Income Tax Query V

 

 

 

 

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?

Replies (5)

Yes, AO is correct.

it has been held by High Courts that Relief u/s 89 is admissible in respect of the amount received by the employee at the time of voluntary retirement  even though exemption has been claimed u/s 10(10C) - CIT v M Raman (Mad)   & ITO v Dilip Shirodkar (PANAJI)/

In my opinion, relief u/s 89 can be claimed in respect of excess amount keeping in view the intention of section 89

 

Thanks for the reply.

employee can not claim the relief u/s 89(1) because amount recd of rs.2 lacs at the time of retirement therefore it should be covered under vrs. and ur question is not specified that rs.2 lacs is arears of salary. and relief is allowed only on arears of salary. 

thus in my opinion ao is correct

if i m wrong please reply and forgive me

under a propritorship concern a  propritor use car( own) and charged the expenses in P&l then is it cagrable under FBT? 

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