DILAVARHUSEN ISHAKBHAI PATEL,BHARUCH vs. ITO CIRCLE 2(1)(1), VADODARA, VADODARA

ITA 1377/AHD/2026Status: DisposedITAT Ahmedabad12 August 2026AY 2021-20226 pages
AI SummaryAllowed

What were the facts?

The assessee received compensation under a BSNL Voluntary Retirement Scheme (VRS) and initially offered a portion to tax due to lack of awareness about exemption under Section 10(10B). The assessee later sought full exemption before the CIT(A) based on subsequent tribunal decisions.

What did the Tribunal hold?

The Tribunal held that the assessee is entitled to exemption under Section 10(10B) for the compensation received under the BSNL VRS-2019 scheme, following its own coordinate benches' decisions.

What were the issues?

Whether compensation received under the BSNL VRS-2019 scheme is eligible for exemption under Section 10(10B) and if such a claim can be made before the Tribunal.

Which sections of the Income-tax Act were involved?

Section 10(10B)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI R. GOVINDARAJAN

For Appellant: Ms. Khushboo Shah, AR, Ms. Madhulika Satpute, Sr. D.R
For Respondent: Ms. Madhulika Satpute, Sr. D.R
Hearing: 04/08/2026

Per Sanjay Garg, Judicial Member:

The present appeal has been filed by the assessee against the order of the Ld. Addl/Joint Commissioner of Income Tax (Appeals)-2, Coimbatore, (hereinafter referred to as “CIT(A)”), dated 21.02.2026 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2021-22. ITA No.1377/Ahd/2026 [Dilavarhusen Ishakbhai Patel vs. ITO] A.Y. 2021-22 - 2 –

2.

The assessee has taken following grounds in this appeal:

“1. The Ld. CIT(A) has erred in law as

The order continues below.

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