COMMISSIONER OF INCOME TAX Vs. GEETHA MOHAN

JUDGEMENT

(1.)

(2.) THE Revenue is the appellant. The assessment year involved is 2001 -02. The case of the appellant is that the assessee/respondent herein, availed the benefit of the voluntary retirement scheme (VRS) and claimed exemption of the amount of compensation received, both under s. 10(10C) and s. 89(1) of the IT Act.

(3.) THE AO granted exemption as envisaged under s. 10(10C) of the Act, but denied the exemption under s. 89(1) of the Act, on the ground that once exemption under s. 10(10C) is allowed, s. 89(1) cannot be invoked. On appeal at the instance of the assessee, the CIT(A), taking the view that it is possible to interpret the sections both ways, and where there is an ambiguity, the benefit should be given to the taxpayer, allowed the appeal, which was confirmed by the Tribunal, on appeal by the Revenue.