- (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. "1. Whether the ex-gratia compensation receipt under V.R.S. partakes the character of salary or not
(2.) Whether the benefit of section 89(1) of the Act could be given to the assessee receiving ex-gratia/compensation or not - Briefly stated, the facts giving rise to the present appeal are as follows. The respondent assessee was an employee of State Bank of India 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. We have heard Sri Shambhu Chopra, learned senior standing counsel appearing for the Revenue. Nobody has appeared on behalf of the respondent assessee. We find that a similar controversy came up for consideration before this Court in the case of Commissioner of Income Tax Versus Harendra Natah Tripathi,2009 14 MTC 418 and this Court has held that relief under section 89(1) of the Act is also admissible in such a case. The aforesaid decision was followed by this Court subsequently in Income Tax Appeal No. 331 of 2007 Commissioner of Income Tax Versus Subhash Chand Goyal decided on 22.07.2010. Sri Chopra, learned counsel could not point out any distinguishing feature so as to enable this Court to take any different view. Respectfully following the aforesaid decisions, we are of the considered opinion that as controversy raised in this appeal is settled by the two Division Bench decisions of this Court and their being no decision to the contrary, the present appeal does not raise any question of law which requires to be decided by this Court.;