MADHUKANTABEN KRUSHNAKANT DAVE,AHMEDABAD vs. INCOME TAX OFFICER WARD- 7 (2)(1), AHMEDABAD

ITA 1047/AHD/2026Status: DisposedITAT Ahmedabad11 August 2026AY 2021-226 pages
AI SummaryAllowed

What were the facts?

The assessee, a retired BSNL employee, received compensation under a Voluntary Retirement Scheme (VRS). Due to a lack of awareness regarding tax exemption provisions, the assessee offered this amount to tax in their return. Subsequently, upon learning about relevant ITAT judgments, the assessee sought exemption under Section 10(10B).

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 VRS. The Tribunal followed the decisions of its coordinate benches on similar matters.

What were the issues?

Whether compensation received under a Voluntary Retirement Scheme is eligible for exemption under Section 10(10B) of the Income Tax Act, and whether the assessee can claim this exemption despite initially offering it to tax.

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: Shri M K Patel, AR, Ms. Madhulika Satpute, Sr. D.R
For Respondent: Ms. Madhulika Satpute, Sr. D.R
Hearing: 03/08/2026

Per Sanjay Garg, Judicial Member:

The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), Thiruvanantpuram, (hereinafter referred to as “CIT(A)”), dated 20.02.2026 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.1047/Ahd/2026 [Madhukantaben Krushnakant Dave vs. ITO] A.Y. 2021-22 - 2 –

2.

The assessee has taken following grounds in this appeal:

“1. That on the facts and in the circum

The order continues below.

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