VENKATA AVADHANI AKELLA,RAJAHMUNDRY vs. INCOME TAX OFFICER, WARD 1(1), RAJAMAHENDRAVARAM

ITA 396/VIZ/2026Status: DisposedITAT Visakhapatnam13 August 2026AY 2020-218 pages
AI SummaryAllowed

What were the facts?

The assessee, an employee of BSNL, opted for the Voluntary Retirement Scheme (VRS) 2019 and received ex-gratia compensation. The assessee initially offered this amount to tax but later sought exemption under Section 10(10B) of the Income-tax Act, 1961, before the appellate authority, citing ignorance of law and favorable judicial precedents.

What did the Tribunal hold?

The Tribunal held that the compensation received by the assessee under the BSNL VRS-2019 scheme is eligible for exemption under Section 10(10B) of the Act, following numerous judicial precedents. The Assessing Officer was directed to verify the claim and allow the exemption.

What were the issues?

Whether compensation received under BSNL VRS-2019 is eligible for exemption under Section 10(10B) and if a fresh claim for exemption can be entertained at the appellate stage.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10C),Section 143(1),Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI VIJAY PAL RAO, HON’BLE & SHRI MANJUNATHA G, HON’BLE

For Respondent: Shri A.P.Babu, Sr.AR

PER MANJUNATHA G, AM: The captioned appeals filed by assessee are directed against separate, but identical, orders passed by the learned Addl./Joint Commissioner of Income Tax (Appeals), Kochi for the A.Y. 2020-21 & A.Y 2021-22. Since common issues are involved in both appeals, the appeals were heard together and are being disposed

The order continues below.

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