JAYAPRAKASH RAMAPPA,BANGALORE vs. ITO WARD 2(1)(1) BANGALORE, BANGALORE

ITA 1692/BANG/2026Status: DisposedITAT Bangalore22 July 2026AY 2020-2114 pages
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What were the facts?

Various BSNL employees retired under a Voluntary Retirement Scheme (VRS) and received retrenchment compensation and leave encashment. They claimed exemptions under Sections 10(10B) and 10(10AA) of the Income Tax Act, but their appeals were dismissed by the NFAC on grounds of limitation and maintainability.

What did the Tribunal hold?

The Tribunal held that the NFAC erred in dismissing the appeals on technical grounds like limitation and maintainability, especially when similar delays were condoned for other BSNL employees. The Tribunal allowed the exemptions claimed under Sections 10(10B) and 10(10AA) for retrenchment compensation and leave encashment, respectively.

What were the issues?

Whether the NFAC was justified in dismissing appeals on grounds of limitation and maintainability, and whether the assessees are entitled to exemptions for retrenchment compensation and leave encashment.

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 ‘SMC’ BENCH : BANGALORE

BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K., JUDICIAL MEMBER

Assessment Appeal No. Appellant Respondent Year R S Badarinatha, 208, Srinivasa, The Income Tax 2020-21 ITA Nos. 1624 & 5th Main, 1st Stage, Officer, & 1625/Bang/2026 Nivedithanagara, Ward – 1(1), 2021-22 Mysore – 570 008. Mysore. PAN: AEKPB3613C Ms. Deepa Sunil Patgaonkar, Chaitanya, Block No. 19, Mahalaxmi The Income Tax Residency Layout, ITA No. Officer, 2020-21 Near Royal Height Apartment, 1646/Bang/2026 Ward – 1, Shabari Nagar Road, Hubli, Davangere. Dharwad – 580 023. PAN: AFVPP5317H Shri Veeranna Hanumanthappa, No. 5 1 cross, Adishakthi The Income Tax Nagar, ITA No. Officer, Challakere Road, 2020-21 1662/Bang/2026 Ward – 1, College Road, S.O., Chitradurga. Chitradurga. Karnataka – 577 501. PAN: ACPPV4164R Aswatha Kumar, #378, 19th Cross, The Income Tax ITA No. Vijaynagar Railway Layout, Officer, 2020-21 1663/Bang/2026 Metagalli S.O., Ward – 1(1), Mysore – 570 016. Mysore. PAN: ADVPK4803D

Faridayashmin G Khatib, 1403, Fernhill Apartment, The Income Tax Karavali lane, ITA No. Officer, Nera nathoor Junction, 2020-21 1664/Bang/202

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