PATHERYA, J. - (1.) This is an application filed under Article 226 of the Constitution of India challenging the order dated 29th March, 2007 passed by the respondent no.1.
(2.) Petitioners? Case 2.1 The case of the petitioner is that all the writ petitioners opted for the Voluntary Retirement Scheme (VRS). While filing the returns, the petitioners claimed exemption under Section 10(10C) of the Income Tax Act, 1961 (1961 Act). The said benefit was given to the petitioners but thereafter the case was reopened under Section 147 of the 1961 Act and the exemption granted was withdrawn. The petitioners aggrieved by the said assessment under Section 147 of the 1961 Act filed an application under Section 264 of the 1961 Act and by order dated 29th March, 2007 the application was rejected, hence the instant application has been filed. 2.2 Counsel for the petitioners has contended that Section 10(10C) of the 1961 Act provides for exemption upto Rs.5,00,000/-(five lacs) on sums received under a Scheme including Voluntary Retirement Scheme. Initially the Reserve Bank of India, the petitioners? employer, refused to grant exemption and several applications were filed before the Income Tax Appellate Tribunals in different parts of India. The said Income Tax Appellate Tribunals including the Income Tax Appellate Tribunal, Kolkata has allowed the said exemption. Therefore, the petitioners are entitled to exemption of Rs.5,00,000/-(five lacs). In fact, the orders passed by the Tribunals have been accepted by the authorities as no appeal has been filed therefrom. Reliance has been placed on 291 ITR 407 and 262 ITR 638 wherefrom a Special Leave Petition though filed was dismissed. Therefore, the exemption as per Section 10(10C) of the 1961 Act be granted.
(3.) Respondent?s Case 3.1 Counsel for the Respondent authorities submits that the said amount had been deducted as tax at source and no exemption was allowed under Section 10(10C) of the 1961 Act. From the assessment order it will appear that the petitioners had claimed exemption under Section 10(10C) of the 1961 Act.;