JAYESHKUMAR FAKIRBHAI RATHOD,NA vs. ARIVS.ITO, WARD 3, NAVSARI, NAVSARI

ITA 596/SRT/2026Status: DisposedITAT Surat15 July 2026AY 2021-2210 pages
AI SummaryAllowed

What were the facts?

The assessee received ex-gratia payments under a Voluntary Retirement Scheme (VRS) from BSNL. Initially, these amounts were offered to tax, but later the assessee claimed exemption under Section 10(10B) as retrenchment compensation. The CIT(A) granted partial exemption under Section 10(10C).

What did the Tribunal hold?

The Tribunal held that compensation received by BSNL employees under the VRS, 2019 scheme is in the nature of retrenchment compensation eligible for exemption under Section 10(10B), following previous ITAT decisions. The AO was directed to grant full exemption under Section 10(10B).

What were the issues?

Whether ex-gratia payments received under BSNL's VRS, 2019 scheme qualify as retrenchment compensation exempt under Section 10(10B) or VRS compensation exempt under Section 10(10C).

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10C),Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: SHRI B.M. BIYANI

For Appellant: Shri Vipul Gohil, AR
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 22.06.2026Pronounced: 15.07.2026

Per B.M. Biyani, A.M.: Feeling aggrieved by two separate orders of first appeal, both dated 29.03.2026 and passed by learned Commissioner of Income-Tax (Appeals)- Addl/JCIT(A)-6, Chennai [“CIT(A)”], which in turn arise out of respective intimations of assessment dated 20.12.2020 and 13.01.2022 passed by learned CPC, Bengaluru [“AO”] u/s 143(1) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2020-21 and 2021-22 respectively, the Jayeshkumar Fakirbhai Rathod ITA Nos. 595 & 596/Srt/2026 – AY 2020-21 & 2021-22

assessee has filed the captioned appeals on the grounds as mentioned in respective Appeal Memos (Form No. 36).

The order continues below.

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