COMMISSIONER OF INCOME TAX Vs. KOODATHIL KALLYATAN AMBUJAKSHAN

JUDGEMENT

(1.) Revenue has preferred this appeal on the following questions:

(2.) Appeal admitted on the questions of law as formulated above.

(3.) On behalf of Revenue it is sought to be submitted that the employees who had taken benefit of the scheme framed by RBI are not entitled to the benefits under Section 10(10C) of the IT Act, considering Rule 2BA of the IT Rules. It. is further submitted that the AO took note of the CBDT Instructions dt. 26th Sept./Oct., 2005 wherein CBDT has stated that the "Optional Early Retirement Scheme" (OERS) introduced by the RBI vide its administrative circular, dt. 11th Sept., 2003 for its employees did not conform to the provisions of Rule 2BA of the IT Rules and, therefore, does not qualify for exemption under Section 10(10C) of the IT Act, 1961. Along with the instructions copy of the letter written by the RBI, dt. March, 2005 was also enclosed. It is also submitted that insofar as the provisions of Section 89 are concerned, the employees who had retired under the scheme would not be entitled to the same. The Tribunal ought not to have taken note of the said provisions while passing the impugned order.