SECTION 10(10C) :Voluntary retirement payments

SECTION 10(10C)/INCOME-TAX ACT

HIGH COURT OF BOMBAY

Commissioner of Income-tax

v.

Koodathil Kallyatan Ambujakshan^*

F.I. REBELLO AND K.U. CHANDIWAL, JJ.

IT APPEAL NO. 53 OF 2008

JULY 4, 2008

Section 10(10C), read with section 89(1), of the Income-tax Act, 1961 and rule 2BA of the Income-tax Rules, 1962 - Voluntary retirement payments - Whether a scheme framed for voluntary retirement or termination of service must either expressly or impliedly comply with requirements as set out in rule 2BA - Held, yes - Whether merely because scheme for voluntary retirement may not expressly set out that vacant posts will not be filled up, it can result in scheme not being a scheme falling under section 10(10C), read with rule 2BA - Held, no - Whether when Optional Early Retirement Scheme of Reserve Bank of India expressly or impliedly satisfied all requirements of section 10(10C) as well as guidelines framed under rule 2BA for purpose of section 10(10C), amount received by assessee under said scheme of RBI would be eligible for exemption under section 10(10C) - Held, yes

Circulars and Notifications - CBDT Circular, dated 26th September/ October, 2005