RAJARAM NARAYAN PATIL,MUMBAI vs. ITO, WARD 1, MARGAO, MARGAO

ITA 257/PAN/2026Status: DisposedITAT Panaji18 August 2026AY 2020-202117 pages
AI SummaryAllowed

What were the facts?

Employees of BSNL received amounts under a Voluntary Retirement Scheme (VRS) in 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 VRS is in the nature of retrenchment compensation and is a capital receipt exempt from tax under Section 10(10B) of the Act. The CIT(A)'s findings were set aside.

What were the issues?

Whether the amount received under the BSNL Voluntary Retirement Scheme is 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, PANAJI BENCH, ‘SMC’ PANAJI

Before: DR.MANISH BORAD & SHRI VINAY BHAMORE

For Respondent: Shri Mayur Kamble

Assessee(s) by : Shri Tanzil Padvekar (virtual) Revenue by : Shri Mayur Kamble Date of hearing : 17.08.2026 Date of pronouncement : 18.08.2026

PER DR. MANISH BORAD, AM : The captioned two appeals at the instance of assessee pertaining to A.Yrs. 2020-21 and 2021-22 are directed against the separate orders framed by Addl/JCIT(A) (ld. NFAC) passed u/s 250 of the Income Tax Act 1961. 2. The common issue raised by the assessee in these two 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 submit

The order continues below.

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