HARBANS SINGH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This order shall dispose of a bunch of three appeals bearing ITA Nos. 260, 261 and 269 of 2013 as according to learned counsel for the parties, similar questions of law and facts are involved in all the appeals. For brevity, the facts are being extracted from ITA No. 260 of 2013.

(2.) Ita No. 260 of 2013 has been filed by the assessee under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 27.12.2012 (Annexure A-3) passed by the Income Tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 758/CHD/2012 for the assessment year 2008-09. The appeal was admitted by this Court vide order dated 10.3.2014 for determination of the following substantial questions of law:--

(3.) A few facts necessary for adjudication of the present appeal as narrated therein are that the assessee had retired from the services of the State Bank of Patiala under 'Exit Option Scheme' floated by the Bank vide circular dated 30.9.2006 and is having income from retiral benefits and from other sources during the year in question. He has filed his return on 31.7.2008 for the assessment year 2008-09 declaring income at Rs. 7,95,394/-. Thereafter, he filed the revised return on 4.6.2009 declaring income at Rs. 2,93,850/- by claiming exemption of Rs. 5 lacs under Section 10(10C) of the Act. The case of the assessee was taken up for scrutiny and notice under Section 143(2) of the Act was issued. The Assessing Officer framed the assessment under Section 143(3) of the Act vide order dated 28.12.2010 (Annexure A-1) at a total income of Rs. 8,41,860/-. The Assessing Officer made additions of Rs. 5 lacs claimed exempt under Section 10(10C) of the Act being amount of ex-gratia received under the Scheme of Voluntary Retirement from the State Bank of Patiala declaring it as not in conformity with the Rule 2BA of the Income Tax Rules, 1962 (in short "the 1962 Rules"), Rs. 11,002/- on account of excess amount of gratuity and Rs. 37,102/- being excess amount of leave encashment both claimed exempt under Section 10 (10AA) of the Act. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity "the CIT(A)"]. The CIT(A) vide order dated 25.5.2012 (Annexure A-2) partly allowed the appeal and deleted the disallowance of exemption under Section 10(10C) of the Act. However, the disallowance of claim Rs. 11,002/- on account of gratuity and Rs. 37,012/- of leave encashment under Section 10(10AA) of the Act were upheld by the CIT(A). Still dissatisfied, the assessee filed an appeal before the Tribunal who vide order dated 27.12.2012 (Annexure A-3) upheld the order of the CIT(A) and dismissed the appeal. Thereafter, the assessee filed an application bearing MA No. 25/Chd/2013 for recalling the order dated 27.12.2012 (Annexure A-3) before the Tribunal. The said application was dismissed by the Tribunal vide order dated 21.6.2013 (Annexure A-4). Hence, the present appeal.