R. BANUMATHY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Challenging the order passed by the first respondent in C.No. 407/01/CIT-I/2009-10, dated 18.02.2011, in and by which, the claim of the petitioner for exemption under Section 10(10C) of the Income Tax Act, has been rejected, the petitioner is before this Court.

(2.) According to the petitioner, he is an employee of ICICI Bank. He opted for Early Retirement Optional Scheme. Originally, the petitioner/assessee filed her return of income for the assessment year 2004-05 on 03.12.2004 admitting a total income of Rs. 10,19,201/- and it was processed under section 143(1) of the Income Tax Act on 21.02.2005. Thereafter, she filed a revised return on 01.07.2005 admitting a total income of Rs. 5,19,207/- after claiming exemption under Section 10(10C) of the Income Tax Act to the tune of Rs. 5,00,000/-. However, the revised return filed by the petitioner/assessee was lodged by the Assessing Officer on 31.05.2007 for the reason that she has not complied with the provisions of section 139(1) of the Income Tax Act and also it has been filed after completion of assessment under section 143(1) of the Income Tax Act. Later, the petitioner/assessee filed a letter dated 12.07.2007 requesting the Assessing Officer to accept the return as filed under Section 139(4) and not under Section 139(5) of the Act. However, the same has not been considered by the Assessing Officer and therefore, she filed a revision under Section 264 of the Act before the first respondent claiming exemption under Section 10(10C) of the Act. Meanwhile, the Bank has introduced the Voluntary Retirement Scheme, by which, a consolidated payment was made to the employees. Under Chapter III of the Income Tax Act, 1961, the incomes not included in total income are specified, in which, the agricultural income and income received by an individual as a member of a Hindu undivided family are exempted and so many other exemptions are there.

(3.) Insofar as this case is concerned, Section 10(10C) of the Income Tax Act, 1961, is relevant, which reads as under: