LAKSHMINARAYANA PERAVALI,HYDERABAD vs. INCOME TAX OFFICER, WARD 3(3), NAGPUR

ITA 289/NAG/2026Status: DisposedITAT Nagpur10 September 2026AY 2021-202212 pages
AI SummaryAllowed

What were the facts?

Assessee employees of BSNL received retirement compensation under the BSNL Voluntary Retirement Scheme, 2019. The assessee claimed this amount as retrenchment compensation, eligible for exemption under Section 10(10B) of the Income Tax Act.

What did the Tribunal hold?

The Tribunal held that the amount received by BSNL employees under the Voluntary Retirement Scheme, 2019, is in the nature of retrenchment compensation and is a capital receipt exempt from tax under Section 10(10B) of the Act. The orders of the CIT(A) were set aside.

What were the issues?

Whether the compensation received under the BSNL Voluntary Retirement Scheme, 2019, qualifies as retrenchment compensation eligible for exemption under Section 10(10B) or falls under Section 10(10C).

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, NAGPUR ‘SMC’ BENCH, NAGPUR

Before: DR.MANISH BORAD

For Respondent: Shri Shiv Shankar Yadav, Sr. DR
Hearing: 31.07.2026Pronounced: 10.09.2026

The captioned appeals at the instance of assessee pertaining to A.Yrs. 2020-21 and 2021-22 are directed against the separate orders dated 18.02.2026 framed by Addl/JCIT(A)- 5, Chennai passed u/s 250 of the Income Tax Act 1961. 2. The common issue raised by the assessee in these appeals is that whether the amount received by the employees of Bharat Sanchar Nigam Limited (BSNL) on account of retirement under the BSNL Voluntary Retirement Scheme, 2019 is in the nature of retrenchment compensation and a Capital Receipt, eligible for exemption u/s.10(10B) of the Act.

3.

At the outset, ld. Counsel for the assessee submitted that the issue raised in these appea

The order continues below.

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