NANAK CHAND,HISAR vs. INCOME TAX OFFICER, WARD-1, HISAR

ITA 5343/DEL/2026Status: DisposedITAT Delhi16 September 2026AY 2021-225 pages
AI SummaryAllowed

What were the facts?

The assessee claimed exemption under Section 10(10B) for an amount received under BSNL's Voluntary Retirement Scheme (VRS), 2019. The Assessing Officer disallowed the claim, but the CIT(A) allowed it for the first installment while disallowing the second.

What did the Tribunal hold?

The Tribunal held that the BSNL VRS scheme was in reality a retrenchment scheme due to the company's financial losses and the need to reduce employee costs. Following previous tribunal decisions, the compensation received was considered a capital receipt and exempt from tax.

What were the issues?

Whether the compensation received under the BSNL Voluntary Retirement Scheme, 2019, is eligible for exemption under Section 10(10B) of the Income-tax Act, 1961, considering it was effectively a retrenchment scheme.

Which sections of the Income-tax Act were involved?

Section 10(10B)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI SATBEER SINGH GODARA

Pronounced: 07.07.2026

This assessee’s appeal for assessment year 2021-22, arises against the Addl./JCIT(A)-1, Lucknow, DIN & Order No: ITBA/APL/S/250/2025-26/1087330688(1), dated 13.03.2026 involving proceedings under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

2.

The assessee’s sole substantive ground raised in the instant appeal challenging to the learned lower authorities’ action denying

ITA 5343/DEL/2026 NANAK CHAND

him section 10(10B) exemption claim of Rs.22,63,359/- received under the ‘BSNLs’ Voluntary Retirement Scheme, 2019,

The order continues below.

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