C I T Vs. KAPIL KUMAR KAKKAR, AGRA

JUDGEMENT

(1.) The present appeal under section 260 A of the Income Tax Act, 1961 (hereinafter referred to as the Act) has been filed against the order dated 30.11.2006 passed by the Income Tax Appellate Tribunal, Agra Bench, Agra. The Commissioner, Income Tax, Agra has proposed the following questions of law said to be arising out of the order of Income Tax Appellate Tribunal.

(2.) Briefly stated, the facts giving rise to the present appeal are as follows.

(3.) The respondent assessee was an employee of UCO Bank and took voluntary retirement under the V.R.S. floated by the bank. He received a lump sum amount as ex-gratia payment for opting under the scheme for retirement. He claimed a sum of Rs. 5 lakhs as exemption under section 10 (10C) of the Act and for the remaining amount, he claimed relief under section 89(1) of the Act. The Assessing Officer did not allow the twin deductions. He, however, allowed the exemption claimed under section 10 (10C). Feeling aggrieved, the assessee preferred an appeal before the Commissioner, Income Tax (Appeals) Agra. The Commissioner of Income Tax (Appeals)-I, vide order dated 22.06.2004 had partly allowed the appeal. He gave the benefit of section 89(1) of the Act. The Revenue feeling aggrieved preferred an appeal before the Tribunal and the Tribunal vide order dated 30.11.2006 had been pleased to dismiss the appeal.