ARUNKUMAR T MAKWANA Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The instant appeal filed under Section 260A of the Income Tax Act, 1961 ("the Act" for short) is directed against order dated September 10, 2004 rendered by the Income Tax Appellate Tribunal, Ahmedabad Bench "SMC A" in ITA No.2179/AHD/2004 with C.O. No.161/AHD/2004, by which the Tribunal has held that under Rule 2BA (vi) of the Income Tax Rules, 1962 ("the Rules" for short), only the lower of the two limits specified therein is exempt and, therefore, only a sum of Rs.35,445/- being the lower limit, would be allowable to the assessee under Section 10(10C) of the Act.

(2.) The appellant was an employee of M/s.Reliance Industries Limited. He took voluntary retirement under Voluntary Retirement Scheme. On such retirement, he received a sum of Rs.2,21,535/-, which was claimed as exempt under Section 10(10C) of the Act. The Assessing Officer held that the amount receivable by the assessee on his voluntary retirement was worked out on the basis of a scheme which was not in consonance with the requirements specified in Rule 2BA(vi) of the Rules and was, therefore, not allowable.

(3.) Feeling aggrieved, the appellant preferred appeal before CIT (Appeals), who deleted the addition by making following observations: