Exemption u/s 10(10C)& 89(1)

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This query is : Resolved

Shefali Bajpai (Querist)

28 December 2008 An employee opted for VRS and claimed exemption of Rs. 5 lakhs u/s 10(10C) and offered the balance Rs. 2 lakh as Salary but also claimed Relief u/s 89 (1) on the balance amount by spreading the same in three preceding years. The Assessing officer while allowing the claim u/s 10(10C) disallowed relief u/s 89(1) on the ground that once exemption was allowed u/s 10(10C), no further exemption could be allowed in relation to any other assessment year in view of the second proviso to section 10(10C). Is the contention of the Assessing Officer correct?

C A GROUP COACHING

C A GROUP COACHING (Expert)

28 December 2008 YES

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 December 2008 The Assessing officer's finding is wrong. Pl refer the case decision in State Bank Of Travancore Vs.CBDT (2006) 151 TAXMAN 133 (KER).

Shefali Bajpai

Shefali Bajpai (Querist)

30 December 2008 Thanks for the reply Mr. Ambani & Mr. Warrier

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