Expenditure on voluntary retirement scheme is tax deductible even if the scheme is not in accordance with the exemption provision for the employees

Delhi ITAT in the case of Sony India Pvt. Ltd. Vs. ACIT [I.T.A. Nos. 4008, 4114 & 4994(Del)/2010] held that deduction in respect of expenses incurred pursuant to a Voluntary Retirement Scheme can be claimed under section 35DDA of the Income-tax Act, 1961  even if the scheme is not in accordance with the guidelines prescribed under section10 (10C) of the Act read with Rule 2BA of the Income-tax Rules, 1962. Section 35DDA of the Act provides for deduction of expenses incurred on VRS over a period of five years. However no conditions/guidelines have been prescribed as to the eligibility of V...