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

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Shefali Bajpai (Querist)
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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)
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28 December 2008 YES

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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).

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Shefali Bajpai

Shefali Bajpai (Querist)
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30 December 2008 Thanks for the reply Mr. Ambani & Mr. Warrier