COMMISSIONER OF INCOME TAX Vs. S SRINIVASAN

JUDGEMENT

(1.) THE above tax case appeal is directed against the common order of the Income-tax Appellate Tribunal in ITA. No. 198/mds/2005, dated 14. 11. 2 005.

(2.) THE Revenue is the appellant. The assessment year involved is 2 001-2002. The case of the appellant is that the assessee/respondent herein, availed the benefit of the voluntary retirement scheme and claimed exemption of the amount of compensation received, both under Section 10 (10c) and Section 89 (1) of the Income Tax Act.

(3.) THE Assessing Officer granted exemption as envisaged under Section 10 (10c) of the Act, but denied the exemption under Section 89 (1) of the Act, on the ground that once exemption under Section 10 (10c) is allowed, Section 89 (1) cannot be invoked. On appeal at the instance of the assessee, the Commissioner of Income-tax (Appeals), 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 tax payer, allowed the appeal, which was confirmed by the Income Tax Appellate Tribunal, on appeal by the Revenue.