ASHOKCHANDRA CHANDULAL GHEEWALA,BHARUCH vs. ITO WARD 1(1), BHARUCH, BHARUCH,GUJARAT

ITA 434/SRT/2026Status: DisposedITAT Surat17 July 2026AY 2021-2212 pages
AI SummaryAllowed

What were the facts?

The assessee received ex-gratia payments under a Voluntary Retirement Scheme (VRS) from BSNL. Initially, the assessee claimed partial exemption under Section 10(10C) for AY 2020-21 and offered the full amount for AY 2021-22. Later, the assessee sought exemption under Section 10(10B) claiming the payments were retrenchment compensation.

What did the Tribunal hold?

The Tribunal condoned the delay in filing appeals before the CIT(A) due to the assessee's lack of awareness of legal provisions. It held that the ex-gratia receipts under the BSNL VRS were in the nature of retrenchment compensation eligible for exemption under Section 10(10B).

What were the issues?

Whether ex-gratia payments received under a VRS are eligible for exemption as retrenchment compensation under Section 10(10B) and whether the delay in filing appeals before the CIT(A) should be condoned.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10C)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI B.M. BIYANI

For Appellant: Shri Vipul Gohil, AR
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 07.07.2026Pronounced: 17.07.2026

Per B.M. Biyani, A.M.: The captioned two (2) appeals are filed by assessee; the details of these appeals are as under:

(i) ITA 433/SRT/2026 is directed against the order of first appeal dated 26.02.2026 passed by learned (Appeals)-Addl/JCIT(A)-7, Delhi [“Ld. CIT(A)”], which in turn arise out of the intimation of assessment dated

Ashokchandra Chandulal Gheewala ITA Nos. 433 & 434/Srt/2026 – AY 2020-21 & 2021-22

28.08.

2021 passed by learned CPC, Bengaluru [“AO”] u/s 143(1) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2020-21. (ii) ITA 434/SRT/2026 is directed against the order of first appeal dated

The order continues below.

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