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?
CAclubindia
