MALUR NANJAIAH GAYATHRI,BANGALORE vs. ITO WARD-2(1)(1) BLR, BANGALORE

ITA 1980/BANG/2026Status: DisposedITAT Bangalore13 August 2026AY 2020-2112 pages
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What were the facts?

Assessees, employees of BSNL, opted for a Voluntary Retirement Scheme (VRS) which was essentially a retrenchment scheme. They received compensation and leave encashment, and sought exemptions under Sections 10(10B) and 10(10AA) of the Income Tax Act.

What did the Tribunal hold?

The Tribunal held that the retrenchment compensation received by BSNL employees is eligible for exemption under Section 10(10B) and that the entire leave encashment is eligible for exemption under Section 10(10AA), including the enhanced limit. The Tribunal also condoned the delay in filing appeals before the CIT(A).

What were the issues?

Whether retrenchment compensation and leave encashment received by BSNL employees under VRS are eligible for exemption under the Income Tax Act, and whether delays in filing appeals should be condoned.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10AA)

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 Malur Nanjaiah Gayathri, No. 1034, 1st Main, The Income Tax Manasa Nagar, ITA No. Officer, Nagarbhavi S.O., 2020-21 1980/Bang/2026 Ward – 2(1)(1), Bangalore North, Bangalore. Bengaluru – 560 027. PAN: ACKPG6825D

Maralavadi Lingasetty Kyathasetty, The Income Tax 311, Brindavana, Officer, 2020-21 ITA Nos. 2311 & 7th Main Road, Ward – 1(1), & 2312/Bang/2026 3rd Cross, Lalithamahal Nagar, Mysore. 2021-22 Mysuru – 570 028. PAN: AFMPK9854M

Mandya Jaderudraswamy Rajesh, The Income Tax 147, 5th Cross, 17th Main, 2020-21 ITA Nos. 2350 & Officer, C-Zone, Kuppaluru, 3rd Stage, & 2351/Bang/2026 Ward – 2(4), J P Nagar, 2021-22 Mysuru. Mysore – 570 008. PAN: ACBPR9254Q

Prasanna, D.No-89/6, Rajathadri The Income Tax ITA No. Shankarnagar Junior College Officer, 2020-21 2408/Bang/2026 Road, Ward – 1(1), Mangaluru – 575 015. Mangalore. PAN: ACMPP4750C

Pujar Jayanna, The Income Tax ITA No. 1966/25, 9th Cross, Officer, 2020-21 2546/Bang/2026 SS Layout A-Block, Ward – 1, Davanagere. Davangere.

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