FARIDAYASMIN G KHATIB,MANGALORE vs. ITO WARD 2(1) MANGALORE, MANGALORE

ITA 2522/BANG/2026Status: DisposedITAT Bangalore12 August 2026AY 2021-227 pages
AI SummaryAllowed

What were the facts?

The assessee received ex-gratia compensation under BSNL VRS-2019, which was paid in two financial years. The assessee initially offered the entire amount to tax without claiming exemption, but later sought rectification based on tribunal rulings that such compensation is eligible for exemption under Section 10(10B).

What did the Tribunal hold?

The Tribunal held that the assessee is eligible for exemption under Section 10(10B) for the retrenchment compensation received under the BSNL VRS-2019 scheme. The dismissal orders of the CIT(A) were set aside, and the appeals were allowed on merits.

What were the issues?

Whether ex-gratia compensation received under BSNL VRS-2019 is eligible for exemption under Section 10(10B) and if the appellate authorities can grant relief on merits despite technical objections raised by lower authorities.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 154,Section 143(1),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

PER SHRI WASEEM AHMED, ACCOUNTANT MEMBER:

The present appeal filed at the instance of the assessee is directed against the order of the learned Commissioner of Income Tax (Appeal) (hereafter, Ld. CIT(A)) passed under section 250 of the Income Tax Act, 1963 (hereafter, the Act), pertaining to A.Y. 2021-22. 2. The effective issue raised b

The order continues below.

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