MYSORE RAMASWAMY HARISH,BENGALURU vs. INCOME-TAX OFFICER, WARD 3(3)(1), BENGALURU, BENGALURU

ITA 1833/BANG/2026Status: DisposedITAT Bangalore23 September 2026AY 2021-228 pages
AI SummaryAllowed

What were the facts?

The assessee, an employee of BSNL, opted for a Voluntary Retirement Scheme (VRS) which was in substance a retrenchment scheme. He received compensation and initially claimed exemption under Section 10(10C) of the Income Tax Act, 1961, but later sought to claim it under Section 10(10B) based on a tribunal ruling.

What did the Tribunal hold?

The Tribunal held that the compensation received under the VRS was eligible for exemption under Section 10(10B) as retrenchment compensation. It found that the assessee had mistakenly claimed exemption under the wrong section and that the appellate authorities have the power to grant relief under the correct provision.

What were the issues?

Whether compensation received under a Voluntary Retirement Scheme, which is in substance a retrenchment, is eligible for exemption under Section 10(10B) and if an assessee can claim exemption under the correct provision before appellate authorities even if initially claimed under a wrong one.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10C)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI BALAKRISHNAN S. & SHRI SOUNDARARAJAN K.

For Respondent: Shri Pradeep S., Addl.CIT – DR

PER SHRI SOUNDARARAJAN K., JUDICIAL MEMBER:

This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 28/02/2026 in respect of the A.Y. 2021-22. 2. The brief facts of the case are that the assessee is an individual and an employee of the BSNL who was opted to retire under the BSNL Voluntary Retirement Scheme, 2019. The Scheme was formulated for restructuring as well as to reduc

The order continues below.

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