Resji’bndent v. Ram Slngh

vIN THE HIGH COURT OF JUDICATURE CHHATTISGARHAT BILASPUR Dwisaan RanchOF 2007 ‘VAxT E _‘U\hww.r[I,] _ AgPELLANT : H , I ‘ :3[@L".§..:.....]mar;...[.........]“(Wkkwrm f*‘ASSIstant[QommISSIoner][ of]Income Tax,-Circle:Kerb? ( RESJI’bNDENT E ? ’ V " 1 VERsus’ _ Ram Slngh . /ShrISItaBalcoKorba(CG) Taxg‘[Ac]6 ase_(_lncome Tax appeal uls 260 A )~ 1 v , of Income Tax HIGH COURT OF CHHATTISGARH AT BILASPUR DISIONIVBNCEH:HON.MR. DHIRERAND MISHRA&HON.MR.R.N.CHANDRAKAR,JJ' Pfresen: Mr.S.RajeshworRoo’Jr.SfondingCounselforappellantsinallfheappeals. Mr. Shoshank[Dubey,]Sr.[Advocate]wi‘rhMr. Neelabh[Dubey,][ Ad]vacate fo[r]The respondenfinoll fhe[appeals.] l -..-..-~_._u;——__-_ ORDERon 1L.6. 2009) (Passed -DhikendraMishra,J 1).These appeals are being disposed[of][ by][ This][ cammon][ order][ as]Commonsubsfan’rialquesTionoflaw‘isinvolvedinfhese'whe‘rher‘appeals on *he foc'rs andin The circumsmnces of Thecase‘rheIncomeTaxAppeiio‘reTribunol(forbreVI‘i’yfheTribunal)wasJustifiedInlowIndirechngtheAsseSSmg‘A.O.)Officer(forshorftoaIIowVfheciaimof fhe assesseefor[exemp'rion][ under][ Section]10 (10C) of The Income[Tax][ Act,]'fhe1961(for[shorf]Acf‘)tofheex’ren‘i’ofRs.5,00,000/-byapplying the prospecfive[amendmem‘][ refrospecfively?] For fhe pdrpoSe[of][ This][ order]referenceis mode io the factsof Tax Cosz No[17/2007](income[Tax][ Officer]Korbo VsRamSevuk Gupta) 2)' ’ - v3)3) Briefly stated, facts[of][ the][ ca_5e][ are][ that][ the][ respondent][ was]an employee ofBharat Aluminum CompanyLtd.(Balco), _Korba.eHefiledreturnoffin’comeforthe assessment year2003-04declaringtaxable income ofRs 3 22 315/-Subsequently,hereVIsed the[taxable][ income][ at][ Rs][ 98][ 800/]The A Oselectedhis case for Scrutiny[and]issuednotice underSection143(2)of the[Act]During the[assessment]proceedingit was noticedthat the employerof the respondent [had]determinedthe ex-.amountofvoluntaryretirementatR57 13 513/-andgratiaoutofthtsamountonly1/5’“ieRs1 42 703/—wasactuallyIpaidtotherespondentintheaSSessmentyearandthebalance amount was[to][ be]paidin four installmentsin the nextfinancial years.[The][ asses’see,][ however,][ claimed][ deduction][ for]a total'sum'of Rs.5,00,000/-,[maximum]limit for exemption[as]‘'Section‘ioThe A.O. allowed exemptionper(10C)[of][ the][ Act.]ofRs.1,42,703/-[as]theamountwhichwasactuallyreceivedbytheassesseeandaddedbackrestoftheamountofex-gratia‘payment[clamed][ by][ the][ assessee.] ' « ‘da’red ‘againg‘sf4)Theassesseepreferredanappeal1'heorder25.4.2005 of’rhe A.O. The CIT Appeols following The decisionof’rheITAT,Nagpurinfhema'r’rerof,FirfuRamYadaVVsACIT,par-fly[allowed][ fhe][ appeal.][ The][ appeal]preferred[by][ fhe]deparfmentwasagaindismissedbvythefribunalbyfheimpugned order ’rhe5)LearnedcounselforTheappellanfsubmitsfhaffrlbunal‘falledToopprecuafeThaffhough'fheemployerhaddeferm’inedfheex-grafiahpaymenfionfhevolun‘rary'aTV'reTiremenTofTherespdndenTRs 7 13 513/-whichwas‘rughtly takenInfo accoun‘r by[’rhe][ employer][ as salary][ Income]InTheflnancualyearunderconSiderafiononreceivablebasis,buTpmd‘‘rheamoun'rofRs.1,42,703/—.Thersumofex—graha‘whichwasacfuallyreceivedpwasfobe,Takeninfoconsiderafion for[exemp‘rion][ under][ Secfion][ 10(10C)][ subjecf][ To]maximumlimiTofRs.5,00,000/-.Theemployeeisqualifiedfor[exempTio‘n][ only][ for][ The][ amounT][ receiyed][ by‘him][ subjecT][ To]amaximum[of]Rs 5 00 000/Tillthe assessmen? year[2003—04,]The employee[was]enTITled for exempTiononly for The[amounT]receivedbyhimTheamendedprovusuonwherebyThewordsorreceivable"wereaddedcameInfoeffecTfrom14 2004SinceThecaseofTherespondenTperTamsTopre[amended]hewasenTITledforexempTIonforTheexgraTiaperiodamounTacTuallyreceivedduringTheassessmenTyearhe};Rs.1,42’70i3/-.6)On The oTher[hand,][ learned]Senior[Counsel][ for][ The][ respondenT]supporTed The[impugned][ ordern]va, 5) " 5) " ‘We7)have heard[learned][ counsel][ for][ The]parTies.s)TheonlyissueInTheSeappealsIswheTherThesumpaidonvolunTaryreTIremenT[scheme]subJecTTolimTTofRs 5LacIsexempTed from[being][ charged][ for][ Tax][ under]SecTion10(106)s)TheonlyissueInTheSeappealsIswheTherThesumpaidonvolunTaryreTIremenT[scheme]subJecTTolimTTofRs 5LacIsexempTed from[being][ charged][ for][ Tax][ under]SecTion10(106) ' ' of TheAcf,’ evenif The paymen‘ris madeiinins’raIlmenTs To bepaidinsubsquenfe yars?e Befbr‘edeal'ingwiththeabovequestion,weproposef0dealwiThfherelevan'rsTaTU’ror-yprovisions.Secfion10(10C)of‘to’amendmen’rtheAct,priorintheyear2003,readsasunder:- - any amourn‘ received by an emploeye[of] ()I[a]publicsector company;or()/7[any][ othercoan]mpy;or(i/I)anauthority'o eblihdstaseudenraCnl,etraSatte‘[or]Prniovical Act:r(/)V[a][ local][authoiy;rt[or]]”v)( a coopratieev coopratieevevsoi:cetycety or ( a coopratieev coopratieevevsoi:cetycety or()wa Univetyrsiesstablihed or icopatdnrore byor uendraClentra'UniersSatte or Procalvini Act and aniinstutiondlardeceto be avityunderSeioctn3of the UnerstyivianGrtsCommission Act,[196]5: or(VII)an Idiann Insituett of‘Tecnoogyhl withnithe mieanngofcelaus (g) of Setcion3 oft‘itsheInsttueof Tegychnolo A,ct191:6or[([Viia)]-[ ay]n[ State][ GoVernmnt:]e[ or]][—(w’ib)[th]eCetanrl Gvernment;oor];(viic)-[an‘istitun,]ntio[ hvig]an[ imptae]ornc[ thrght]ououIndia orinany[Stateor]Ststae, astheCentralGovernmentma,[b]notficationim theOfflcmlGtte,azesipecfytnthsibelbag;or](vii)i[such][ ititute]ns[ o]fmageetnamn as:tehCentralGvenmorentmy,a by nfcinotiiatointhe OffiiaclGazette,secipfyinthis behf,]al'(on[his)][ voluntary][ retement]ir[ o]rtrinationem of hissice,ervinaccordanceWithany smecheorseschemof‘voluntaryrerementtiorinthecase of fa pcubli srectocomapnyrfredeer_ toHin“sb-clauseu(),Iaschemeofvolunytarsearaonpti,to’the ettxen such amunto doesnotexced five;Iakh‘rupeesz] Provdeidthatthe schemesofthesaid copnismaeorauhoiestritorsetociies or UniitsversieortheInstitutes rfredeertoinsu-clausebs(V/'/)[and](V177),[as][ the][ case][ may][ be,]governing[the]payment[of][ such][ amount]areframedinaccordancewithsuchguidelines(includinginteraliacriteria of economic viability) as may be preseribed: i dto an employee.Provided[further][ that][ where][ exemption][ has][ been][ allowe]underthisclause for’any assessment year,[no]exemption thereunders hall be allowed to him[in] relation to any other[assessment]year: ClauSe(10C)ofSection ‘10oftheActhas‘been amendedby“orthe‘FinanceAct,2003w.‘e.f.1.4.2004andthe[vwords]receivable" were added aterf the words[“c.]reeived" 10)Secfoni15offehAc‘rdfinees'a‘islares'adnThesameisquo’red[herein][ below:-] “15. Salaries—The following income shaii be chargeable To[income] “Salaries"—fax under [The head] (a)[any][ salary][ due][ from][ an][ employer][ or][ a][ former][ employer][ to][ an]assessee[in][ the]previousyears,[whether][ paid][ or][ no‘r:]assessee[in][ the]previousyears,[whether][ paid][ or][ no‘r:] (b)[any][ salary][ paid][ or][ allowed][ to][ him][ in][ the][ previous][ year][ by][ or][ on]behalf[of][ on][ employer][ or][ a][ former][ employer][ though][ not][ due]or before[it][ became][ due][ to][ him:]behalf[of][ on][ employer][ or][ a][ former][ employer][ though][ not][ due]or before[it][ became][ due][ to][ him:] in the previous(c)[any][ arrears][ of][ salary][ paid][ or][ allowed][ to][ him]‘year[by][ or][ on][ behalf][ of][ an][ employer][ or][ a][ former][ employer,][ if]not charged[to][ income][ tax][ for][ any][ earlier][ previous][ year."]year[by][ or][ on][ behalf][ of][ an][ employer][ or][ a][ former][ employer,][ if]not charged[to][ income][ tax][ for][ any][ earlier][ previous][ year."] Section[17](3)(i)[of][ the][ Acts][ reads][ as][ under:-] “5alary”,“perquisite”“profits and and in lieu of[salary"][ defined.—] For the purposes[of][ Sections][ 15][ and][ 16][ and][ of][ this][ section.-—]x “Salary" includes— includes—(1) (/)[wages;] (I'I)[any][ annuity][ or][ pension:] (17/)[any]gratuity; in the previous(c)[any][ arrears][ of][ salary][ paid][ or][ allowed][ to][ him]‘year[by][ or][ on][ behalf][ of][ an][ employer][ or][ a][ former][ employer,][ if]not charged[to][ income][ tax][ for][ any][ earlier][ previous][ year."]year[by][ or][ on][ behalf][ of][ an][ employer][ or][ a][ former][ employer,][ if]not charged[to][ income][ tax][ for][ any][ earlier][ previous][ year."] Section[17](3)(i)[of][ the][ Acts][ reads][ as][ under:-] “5alary”,“perquisite”“profits and and in lieu of[salary"][ defined.—] For the purposes[of][ Sections][ 15][ and][ 16][ and][ of][ this][ section.-—]x “Salary" includes— includes—(1) (/)[wages;] (I'I)[any][ annuity][ or][ pension:] (17/)[any]gratuity; (iv)[any][ fees,][ commissions,][ perquisites][ or profits][ in lieu][ of][ or] in addition[to][ any][ salary][ or][ wages:] (v)[any][ advance][ of][ salary;...............] ()3‘profits in lieu of salary’ includes- (i)[the][ amount][ of][ any][ compensation][ due][ to][ or][ received][ by][ an]assessee fromhis employeror former[employer]at orinconnection[with][ the][ termination][ of][ his][ employment][ or][ the]modification[of][ the][ terms][ and][ conditions][ relating][ thereto."]assessee fromhis employeror former[employer]at orinconnection[with][ the][ termination][ of][ his][ employment][ or][ the]modification[of][ the][ terms][ and][ conditions][ relating][ thereto."] 11)Section10(10C)oftheActwasinsertedinordertomakevoluntaryretirementattractivesoastoreducehumancomplementsforsecuringeconomicviabilityofcertaincompanies.Itwasintendedtomakevoluntaryretirementmoreattractiveandbeneficialtotheemployeesoptingforvoluntaryretirement.Therefore,thishastobeinterpretedin a manner[beneficial]to the[optee][ for][ voluntary][ retirement],if thereis any ambiguity. (a)[of][ the Act][ provides][ for][ chargeability][ of][ salary] 12)Section[15](a)to tax[as][ soon]it becomesdue, thoughnotpaid.Assoon theliabilityis complete.salary becomes[due,][ the][ incurring][ of][ the]Assoontheliabilityisincurred,itbecomesadeemed ‘r 43(2)[of][ The ACT]In *hepresent caseThcugh The amountof’rmyonthlbenefl?payabelunderthevolunfaryre’rtremen:schemeconSIs‘rsofsalaryorbenefn‘l‘InIleuofsalary,asdefmed m Sechon17(1)or()3readwuThSechon 43(Z)of‘tehActPrlorfo amenmenfd mfheAcf2003anyamountVrecelved"byanemloeepyonhisvoluntaryretirementIn’accordance wuth any[sceme]hofvounarylt retlrementwas notobeIncludedIn computinghis totalIncome for thepreVIous‘“‘yearExemptionIsavallable to the extentofRs 500 00-0/bUndertheschemehabllltytopaywasIncurredandthe,amountbecamepaableyatthetimewhentheempoyeelwas‘releasedhaVIng opted for[the][ voluntary][ retirement][ under]theazschemeThereforethisIs an amountwhichIs receivaebl byJtheemployeeatthetimeofvoluntaryretirement accormdg'"to the scheme and[became][ chargeabe]l[ to][ tax][ uner]d[ clauSe](a)flofSection 15 of the[Act]even touhhg notpidaSection10()10Cof the Act seCIfIesp[that]In comutingp total”-Income received by any[categor]yof employeedbescriedIn tehsectionatthetimeofhisvoluntaryrtremelentorI,termination ofhis serVIcealongWith a[scheme][ or][ schemes][ o]fvyoluntarretirementIsnottobeIncudedltotheextentofuch amountdoesnot exceed Rs5 LacThe second proVIso tolthesectionfurtherlasythatwhereexemptionashbenefollowedto an empoyeel underthatclause,for any assessment'year,noexemtionpthereundershallbeallowed, tohimin,-relation to another assessmentyear. Section 15ofteh ActisLcouchedinthewidestpossibletermstoincluedwthniiitsambiteverykindofremunerationofeverykind ofservan,thowever hihlgyorlowlyplaced[hemay][ be.][ It][ brings][ to][ charg]e(1) any salarydue,in the previous years, wheterh padi[or][ not]:‘of(2)advancesalary;and(3)arrearssaary.lThus,theamountpayableunderthevountarylretirementschemeis '‘ , ' salary’wifhinfhemeaningofSection171(1)or, (3)redd wHh’rheSecfion 43(2)[of] Act. '‘ , ' salary’wifhinfhemeaningofSection171(1)or, (3)redd wHh’rheSecfion 43(2)[of] Act. 14)In the ma‘Her[of][ SAIL]DSPVR EmployeesAssociation1998'181Vs.UnionofIndia&o‘rhers’repor'fed'in(2003)CTRV367theaforemeniioned‘question"oflawcame,forconsiderofionbeforefheDivisionBenchofHighCoum‘ofCalcuffa.Relying upon[The]judgmen‘rs[of][ fhe][ Hon'ble][ Supreme]Cour?inthemaifersofC’BDT‘ Vs[(Adifya]B’irlal‘reporfedin(1988)67CTR(so)[165]: p988)17o, ITR137.(sC) andK.P.VargheseVs.ITOreported‘in(1981)24CTR(5C)358(1931)i31ITR597 (so)u washeld Thai The[amouni]Lrecelvabletowardsmonthlybenefitsprowdedundertheschemeofvolunfaryreflremen‘ronlyquoliflesfor exemp‘horxunderSection10(10C)ToTheexfenfofRs.5Lac.Otheramountspayableunderdifferenf[heads;][ such]asencashmenfofleave paymedicalbenefifgrafuifye‘icWouldnofqualify’rha‘rIfIs furfher heldfor[exemphon][ under][ Sechon][ 10][ (10C)]theamountwhichIsreceivablea1thetimeofvoluntaryretirementaccordingtotheschemeandbecamechargeableisto tax under[clause](a)[of][ Section][ 15,][ even][ though][ not][ paid,]exempted from[being][ charged.][ totax][ by][ reasons][ ofSection]1O(10C)totheextentofRs.5Lac.Evenifthekpayment’is"overa‘stretchedperiodof years, the[same]wo‘uldnot becomechargeable[to][ tax]in any’subsequent[assessment]year. > 15)Now, weproposetoexaminewhetherit wouldbehitbythesecond proviso[tosection]10 (10C) of'the[Act.]Second proviso‘exemp’fionundér‘ Seéfion[10](10¢)‘fo[the][ éxj‘enf]Vprovides[That]thatthebenefitofexemptionisavailable,onlyinone-assessment‘yearandwouldnotbeavailableforanyotherassessment year,[once][ availed]of. 16)VideamendmentbyFinanceAct,2003,clause(10C)of'orSection10wasamendedandthewordsreceivable'were I j] “x. A‘ ‘re’ceived'added after[the][ words]The above amendment[came]’rheIn’roforcewef142004IncerTa’mcasesSomeofemployeesavmlmgofvolumaryreTIrementschemewerefacmgproblemIncaseTheamountwasgivenTothemm‘ ‘mstallmentsoveranumberofyearsKeepingInViewtheabovefactdepartmentalCircularNo.7/2003dateda5.9.2003[was‘issued][ which reads][ as][ under:-] _ > 15)Now, weproposetoexaminewhetherit wouldbehitbythesecond proviso[tosection]10 (10C) of'the[Act.]Second proviso‘exemp’fionundér‘ Seéfion[10](10¢)‘fo[the][ éxj‘enf]Vprovides[That]thatthebenefitofexemptionisavailable,onlyinone-assessment‘yearandwouldnotbeavailableforanyotherassessment year,[once][ availed]of. 16)VideamendmentbyFinanceAct,2003,clause(10C)of'orSection10wasamendedandthewordsreceivable'were I j] “x. A‘ ‘re’ceived'added after[the][ words]The above amendment[came]’rheIn’roforcewef142004IncerTa’mcasesSomeofemployeesavmlmgofvolumaryreTIrementschemewerefacmgproblemIncaseTheamountwasgivenTothemm‘ ‘mstallmentsoveranumberofyearsKeepingInViewtheabovefactdepartmentalCircularNo.7/2003dateda5.9.2003[was‘issued][ which reads][ as][ under:-] _ “9.1.Undef‘The. exisfing'pr‘ovisi'on[conmined]in clause,(10€)'anof secfionkio,[any][ amouhf][ received]byempioyee ofaSecTorcompanyoranyothercompanyorfanpublicau‘rhor‘lfyestablishedunderaCen‘rr‘alSTa‘reor'ProvmcmlActoralocalauthorllyor'acooperahveSecte‘ry,oraUmver'sH‘y,~ or'IndianInsh‘ru’reofTechnology,orSfaleorCenTralGovernmen’roranInstitution havmgnahonal/Sfa’reIevelImpor‘l’anceora‘_instilufeof‘managemen’rnohfledbytheCenfral'anof secfionkio,[any][ amouhf][ received]byempioyee ofaSecTorcompanyoranyothercompanyorfanpublicau‘rhor‘lfyestablishedunderaCen‘rr‘alSTa‘reor'ProvmcmlActoralocalauthorllyor'acooperahveSecte‘ry,oraUmver'sH‘y,~ or'IndianInsh‘ru’reofTechnology,orSfaleorCenTralGovernmen’roranInstitution havmgnahonal/Sfa’reIevelImpor‘l’anceora‘_instilufeof‘managemen’rnohfledbytheCenfral’l"rhe‘afar,aftimeofvoluntaryGoverhment,yretirement,[or]in the-case[of]public[sector][ companyya]scheme ofvoluntaryseparation,_totheextentsuchamountdoesnotexceedfivelakhrupeesisnotV‘IncludedIncomputingthetotalIncomeofsuchemployee.However,[some]oftheemployeesavailing,of VRS were facing problemsincase the amountwasIn Installmentsover a number[of]yearsgiven[to][ them]9.2LTosolvethisproblemclause (10C)of section10has’beenamendedbytheFinanceAct2003toprovudethatanyamountnotexceedingfiveIakhrupees’even’lf'receivedorreceivable(I.e.‘receivedininstallments)by'anemployeeonhisvoluntaryretlrementorterminationofhisservncewullnotbe~IncludedIncomputungthetotalIncomeofsuch_afar,aftimeofvoluntaryGoverhment,yretirement,[or]in the-case[of]public[sector][ companyya]scheme ofvoluntaryseparation,_totheextentsuchamountdoesnotexceedfivelakhrupeesisnotV‘IncludedIncomputingthetotalIncomeofsuchemployee.However,[some]oftheemployeesavailing,of VRS were facing problemsincase the amountwasIn Installmentsover a number[of]yearsgiven[to][ them]9.2LTosolvethisproblemclause (10C)of section10has’beenamendedbytheFinanceAct2003toprovudethatanyamountnotexceedingfiveIakhrupees’even’lf'receivedorreceivable(I.e.‘receivedininstallments)by'anemployeeonhisvoluntaryretlrementorterminationofhisservncewullnotbe~IncludedIncomputungthetotalIncomeofsuch_ L , empoyee.lOthercondifions,as;wellasfheoveralllimi’r shall however, remain[unchalnged.] L , empoyee.lOthercondifions,as;wellasfheoveralllimi’r shall however, remain[unchalnged.] ”This amendmem‘will fake effecflfr‘om1April, 2004,andwill,accordingly,applyinrelafionTotheassessmentyear 2004—2005 and[‘subSeuenf]qy."ear'sJ17)Theco'req’nuestioforourconsiera’riondintheseappealsis“The inferrefalonpi of expressionamounf received"in Section10 (106) of the Actprior to Amenment,d[2003].18)Expressionusedinthestatuteisnotawaysltobeinterpretedliterally or grammatically. Sometimesit has to beinterretedphavingreardgtocontextin wichhexpressionisusedandhavingregardtotheobjectandpurposeforwhith/:tehsameisenactd.eTaxlawshavetobeinterpretedreasonablyand inconsonancewith justiceadoptingpervasiveapproach. Contextualmeaninghas to be ascerainedt and giveneffectto.‘Aprovisionfordeduction,exemptionorrelief'should be constrUed[reasonabl]yandin favour ofteh assessee.Itis well recognized princilep[that]subsequentlegislation maybe looked at in'order[to][ see][ what]is th‘epproeritnnterpreatiotobeputuonptheearierlActwheretheearierlActisobscureorambiguousorreadilycapableofmorethanoneIpnterretation. (StaterofBiharVs.'$.K.Roy,AIR1966SC“refUnded”[‘as‘use]1995.)Whileinterpretingthewordsdin/iclause(b)ofsctione15oftheCentralSalesTaxAct,195$the Hon'ble Aexp Courtin the matter of ThiruManickamand‘CoVersusTheStateofTamilNadureortedpin (1977)1SCC199held that ambiguityin the languaeg ofclause()bofSection15, asiteXIsted at-tehrelevanttime,the matterismade clearby[the][ amendment made]in the centralAct by theCentralSalesTax(Amendment)Act,1972'.Ithasbneefurtherheldthat tehfact taththeamendment'ofclause(b)ofsectoni15,wasnotlikesomeotherprovisonisgiven refrosp’ecfiveeffectwouldnofr‘aieriallfyaffécfThepOsifiOn.Asalreadymentionedaov'e,btehlgleisatureasaresul’rofThe amendentmclarifiedwa?hwasipimlcitinfhepirovsions asfhyeexisfed earleriAn[iamendmen‘l]whichisbywayofclarificafionofan erliera amiguoubsprovumnscanbeuselfualdIncirumonsgtheealerrl:provusuonevenfhoughsuchamendmenfIs no?given re‘rrospeci[Ive][ effect]2)0ITcouldnotbeThemfenhonofthelegislaturetoextendbeneitfunderSection10 ()10Cofthe Act to the employeeswhoretlred brefoe14.200.4,torestrictthesumtotheextent tehaumont atuallcyreceivedby thematlthetimeofvyoluntarretirement for thatphularrtic[assessment]year[and]to otheremloyeespofthesomeorganizationwhooeptdforvayoluntrretirementafter14 2004toextendthatbenefitiortheamountreceivedbythemaswellastheamountreceivablebytehmi,gthesubsequentfinancmlyersaThereforewe are of the consuderedopinion that amedmetnnwas clarllcatoryf andcurativein nature.hreTerefototheeentxtofRS5Lac[’e]thsadiamountisepxemtedfrombgeincarehgdto taxbyreasonofSection10()10CoftheActEvenif tehpyamentisstretchedoveraperiod of yearsthe same woudl notbecome cargealehb to taxinanysubsequentassessmentyearAnamount bsecomecghareableonceitisearnedwetherhitisreceivedornot‘SincetheemployeewasnotinserVicethrefeoreth edeferredpamentyWillnotcontinueanditwouldnotbeasyalarfrom serVIceneither a deferredpayment ofsalary norarrearpyament ofsaary,l Since the scemehptostulaes an onetimepaymentin consierationd of voluntary retirement thoughtehpamentyisdfeerredinfiveinstamentsllThereorefitwouldnotbeapaymentofsalayroutSIdethescopeof‘Section10(10C)ofthe Atc.Theciharactesticcanotnbe ‘ j R—oshjan/— ‘chanvged’[because][ of][ éfretching]over- offfie period[of]pqymenfof dues under[The][ scheme] 22) On the[basus][ of][ aforesaud]discussionswehold[’rhaf][ salary][ or]'beneflfInIleuofsalarypayable10anemployeeop'rmgforvolun‘rar‘yreflremenfIschargeableTofaxunderSec‘hon15II? became dueThough noT paidThe amounT So(a)[as][ soon][ as]receivedisexempTedfrombeingchargedToTaxToTheexTenT of[Rs][ 5][ 00][ 000/]by The reason[of][ Sec‘hon][ 1O](10C)[of]lThe AcTEvenIf The paymenTIs sTreTchedover aperiodofThesamewouldnoTbecomechargeableToTaxInanyyears‘''IsubsequenT[assessmenT]year_j_I,_ 23) InTheresuITTheappealshavenosubsTanceThesameNo orderdeserve[To][ be][ dismissed][ and][ are][ hereby][ dismissed]as To cosTs. __L3d,.VprRN. ChandrakarlrJUdge'a, ,_~_;+__ Sdl-VDhirendra MTshraJudge g