Dayal Singh Vs ITO (ITAT Chandigarh)
Conclusion: Assessee was entitled for exemption under section 10(10B) for Voluntary Retirement Scheme (VRS) compensation on whole of the amount received citing that the Central-Government approved schemes that benefited Employees.
Held: Assessee filed his Income Tax Return and offered Rs. 19,98,055 on account of VRS compensation which was received from HMT Ltd (Tractor Division). Later, assessee came to know that the amounts received under VRS were exempted under section 10(10B). Assessee filed an appeal before CIT(A) which was delayed by 691 days. CIT(A) dismissed the appeal observing that assessee failed to show sufficient cause for the delay in filing the appeal. Aggrieved by the order, CIT(A) filed an appeal before the Tribunal. Assessee relied on the judgment of the tribunal in the case of Deepak Budhani Vs. ITO for the condonation of the delay in filing the appeal. He submitted that Tribunal had condoned the delay in filing the appeal and sought to condone the delay in filing the appeal. He also relied on Tribunal’s judgment in the case of Suresh Pal Chauhan Vs. ITO, the facts were identical to the case of assessee. Assessee submitted that it was held in the case that any scheme extending special protection for the workmen with the approval of the central government then the amount received by the employee could be exempted under section 10(10B). It was held that under the identical set of facts and circumstances of the case, where the matters had been decided and the Revenue was not in appeal, following the principle of consistency as well, the matter deserved to be decided in favour of the assessee at the first appellate level itself which unfortunately had not happened in the instant case. In light of aforesaid discussion and in the entirety of facts and circumstances of the case, assessee was held eligible for exemption u/s 10(10B) on whole of the amount received of voluntary retirement compensation amounting to Rs 36,07,576/- and AO was directed to allow necessary relief to assessee.
