Assessee received certain amount from his employer under VRS scheme which was claimed as exempt under section 10(10C)(viii) as well as section 89(1) r.w.s. 17(3) of the Act. AO rejected the claim of the assessee and an application under section 264 was filed which was rejected by the CIT. Assessee filed a writ petition which was disposed off by a single judge as alternative remedy was available with the assessee by filing an appeal to the CIT(A). However, the division bench set aside the order of the single judge and held that when proceedings are without jurisdiction, existence of alternate remedy is not a bar for granting relied under Article 226 of the Constitution of India. Reliance was placed on Calcutta Discount Company Ltd v .ITO (1961)41 ITR 191(SC). Further, relying on the decision of State Bank of India v. CBDT (2006 KLT 258), the HC held that assessee was entitled to claim deduction under section 10(10C)(viii) and section 89(1) of the Act. (WA No. 1713 of 2020 dt. 5-01-2021) (AY . 2001-02)