SARDARSINH AMARSINH CHAVDA,AHMEDABAD vs. INCOME TAX OFFICER, WARD 7(2)(1), AHMEDABAD

ITA 1651/AHD/2026Status: DisposedITAT Ahmedabad18 August 2026AY 2021-226 pages
AI SummaryAllowed

What were the facts?

The assessee received compensation under a Voluntary Retirement Scheme (VRS) and claimed exemption. The CIT(A) dismissed the appeal due to delay and because the claim was not made in the original return. The assessee argued that the delay was due to lack of awareness of legal provisions regarding exemption.

What did the Tribunal hold?

The Tribunal held that the delay in filing the appeal and the failure to claim exemption in the original return were due to lack of awareness of legal provisions. Following various ITAT precedents, the Tribunal directed the Assessing Officer to allow the exemption claim.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal without adjudicating on merits due to delay and the claim not being made in the original return. Whether the compensation received under VRS is exempt under Section 10(10B).

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10C),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH

Before: Shri Narendra Prasad Sinha & Shri Tapas Ram Misra

For Appellant: Shri Suchit Patel, A.R
For Respondent: Smt. Deeba Farhat, Sr. D.R

PER TAPAS RAM MISRA, JUDICIAL MEMBER:

The captioned appeals relate to the same assessee and are against separate orders passed by the Ld. Addl/Joint Commissioner of Income Tax (Appeals)-2, Hyderabad, (hereinafter referred to as “CIT(A)”), both dated 30.03.2026 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Years (A.Ys.) 2020-21 & 2021-22 respectively. Since common issue is involved in both these appeals for the sake of convenience the same are disposed of by this common order.

I.T.A Nos. 1650 & 1651/Ahd/2026 A.Ys. 2020-21 & 2021-22

The order continues below.

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