SHARAD SHIVNARAYAN DUBEY,MUMBAI vs. INCOME TAX OFFICER, WARD 1,, CHANDRAPUR

ITA 266/NAG/2026Status: DisposedITAT Nagpur14 July 2026AY 2020-2124 pages
AI SummaryAllowed

What were the facts?

Assessees received compensation under the BSNL Voluntary Retirement Scheme, 2019. They initially offered the amount to tax after claiming a partial exemption under section 10(10C) or paid tax on the excess over Rs. 5 lakhs. The claim for full exemption under section 10(10B) was made for the first time before the CIT(A).

What did the Tribunal hold?

The Tribunal held that the compensation received under the BSNL VRS-2019 scheme constitutes retrenchment compensation and is eligible for exemption under section 10(10B) of the Income-tax Act, 1961, as a capital receipt not chargeable to tax without any limit. The CIT(A)'s findings were set aside.

What were the issues?

Whether compensation received under the BSNL Voluntary Retirement Scheme, 2019, qualifies as retrenchment compensation exempt under Section 10(10B) of the Income Tax Act, and whether such a claim can be entertained for the first time before the appellate authorities.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10C),Section 250,Section 249(3)

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR “SMC” BENCH :: NAGPUR BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI KHETTRA MOHAN ROY, ACCOUNTANT MEMBER Sr. ITA Nos. A.Y. Assessee Revenue No. 1-2 220/NAG/2026 2020-21 Yogesh Shyamsunder DCIT, 221/NAG/2026 2021-22 Maheshwari, Circle-3, C/o Padvekar Law Nagpur Chambers, 408, Maker Bhavan No.3, 21, New Marine Lines, Mumbai-20 PAN : ACOPM 3419 K 3 260/NAG/2026 2020-21 Ranjana Balkrisha ITO, Kadu, C/o Padvekar Ward-3, Law Chambers, 408, Amravati Maker Bhavan No.3, 21, New Marine Lines, Mumbai-20 PAN : ABPPK 0516 P 4-5 264/NAG/2026 2020-21 Makarand Damodar ITO, 265/NAG/2026 2021-22 Gadre, C/o Padvekar Ward-1, Law Chambers, 408, Akola Maker Bhavan No.3, 21, New Marine Lines, Mumbai-20 PAN : ABJPG 0081 H 6-7 266/NAG/2026 2020-21 Sharad Shivnarayan ITO, 267/NAG/2026 2021-22 Dubey, C/o Padvekar Ward-1, Law Chambers, 408, Chandrapur Maker Bhavan No.3, 21, New Marine Lines, Mumbai-20 PAN : AGIPD 1033 E

ITA No. 220 & 221/NAG/2026 & 38 other cases (Yogesh Shyamsunder Maheshwari & Ors.) 8-9 268/NAG/2026 2020-21 Malinee Bhaskar ITO, 269/NAG/2026 2021-22 Sawdadkar, Ward-3, C/o Padvekar Law Akola Chambers, 408, Maker Bhavan No.3, 21, New Marine Lin

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