MAHENDRA SHET,UDUPI vs. ITO WARD 1 TPS UDUPI, UDUPI

ITA 2524/BANG/2026Status: DisposedITAT Bangalore28 August 2026AY 2020-2111 pages
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What were the facts?

Assessees, BSNL employees who opted for VRS 2019, received retrenchment compensation. They initially offered part of it as income or claimed exemption under Section 10(10C), later seeking exemption under Section 10(10B) based on a tribunal ruling. Their appeals to the CIT(A) were dismissed on grounds of limitation and maintainability.

What did the Tribunal hold?

The Tribunal held that the CIT(A) ought to have condoned the delays and entertained the appeals on merits, as similar claims by BSNL employees had been allowed by various benches. The judgment of the Supreme Court in Goetze (India) Ltd. was deemed not applicable to appellate authorities.

What were the issues?

Whether the CIT(A) erred in dismissing appeals on grounds of limitation and maintainability, and whether retrenchment compensation received by BSNL employees under VRS is eligible for exemption under Section 10(10B).

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10C),Section 119(2)(b)

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE

BEFORE SHRI BALAKRISHNAN S., ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K., JUDICIAL MEMBER

Assessment Appeal No. Appellant Respondent Year

Lata Muralidhar Joshi, B-02, 2nd Floor, The Income Tax ITA No. Jain Heights SOLUS-01, Officer, 2021-22 2317/Bang/2026 1st Cross, J C Road, Ward – 1 & TPS, Bengaluru – 560 027. Gulbarga. PAN: AKCPJ7098K

Mallappa Hanamanthappa Choular, The Income Tax B-02, 2nd Floor, Jain Heights ITA No. Officer, SOLUS-01, 2021-22 2321/Bang/2026 Ward – 1 & TPS, 1st Cross, J C Road, Gulbarga. Bengaluru – 560 027. PAN: AIGPC5472N

Oruganti Sailaja, No. 54, Thimma Reddy Colony, The Income Tax ITA No. 9th Main Road, Officer, 2020-21 2441/Bang/2026 Thippasandra, Circle – 1(1)(1), Bengaluru – 560 075. Bangalore. PAN: AQTPS0792A

Pushpalatha Aiyappa, Telegraphs, New Extn Madikeri, The Income Tax ITA No. Kodagu, Officer, 2020-21 2468/Bang/2026 Madikeri, Ward – Madikeri. Karnataka – 571 201. PAN: ABCPA3203G Mahendra Shet, D-3, Telecom Quarters, The Income Tax ITA No. Alevoor Road, Manipal, Officer, 2020-21 2524/Bang/2026 Udupi, Ward – 1 TPS, Karnataka – 576 104. Udupi. PAN: AHMPS6095E ITA Nos. 2317

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