The assessing officer initiated proceedings on the premise that the appellant was not entitled to claim deduction under Section 10 (10 C) (viii) and also under Section 89 (1) of the Act in respect of amounts received as part of VRS. Revision under section 264 of the Act was also rejected. On Writ, it was observed that the claim came to be rejected on the basis of the instructions/letter issued by the Central Board of Direct Taxes on 23-04-2001, but the said circular was quashed by this Court in State Bank of India v. Central Board of Direct Taxes; 2006 (1) KLT 258. Therefore, the appellant was entitled to claim deduction under Section 10 (10C) (viii) of the Income Tax Act and relief under Section 89 (1) (as the provision stood at the relevant point of time) in respect of amounts received by him under the voluntary retirement scheme.