BHARAT NARHARIPRASAD PANDYA,BHARUCH vs. INCOME TAX OFFICE WARD 1(1), BHARUCH, BHARUCH

ITA 294/SRT/2026Status: DisposedITAT Surat16 July 2026AY 2020-202112 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 exemption under Section 10(10C) of the Income Tax Act. Later, upon learning that such receipts might be fully exempt under Section 10(10B), the assessee sought exemption under the latter section, but the appeals were dismissed by the CIT(A) due to delay.

What did the Tribunal hold?

The Tribunal condoned the delay in filing appeals before the CIT(A) due to the assessee's bona fide lack of awareness of the legal position. On merits, following various ITAT decisions, the Tribunal held that compensation received by BSNL employees under VRS, 2019, is in the nature of retrenchment compensation eligible for exemption under Section 10(10B).

What were the issues?

Whether the ex-gratia payment received under BSNL's VRS, 2019, is eligible for exemption under Section 10(10B) as retrenchment compensation, 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 S Gohil, AR
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 23.06.2026Pronounced: 16.07.2026

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 294/SRT/2026 is directed against the order of first appeal dated 16.02.2026 passed by learned (Appeals)-Addl/JCIT(A)-3, Bengaluru [“Ld. CIT(A)”], which in turn arise out of the intimation of assessment

Bharat Narhariprasad Pandya ITA Nos. 294 & 295/Srt/2026 – AY 2020-21 & 2021-22

dated 28.10.2021 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 295/SRT/2026 is directed against the order of first appeal dated 16.

The order continues below.

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