KIRAN VINAYAK NAIK,MUMBAI vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(1), HUBLI, HUBLI

ITA 1526/BANG/2026Status: HeardITAT Bangalore09 July 2026AY 2020-2111 pages
AI SummaryAllowed

What were the facts?

Assessees, BSNL employees who opted for VRS, received retrenchment compensation and leave encashment. They initially offered part of the compensation as taxable income and claimed limited exemption for leave encashment, later seeking full exemption based on subsequent judicial pronouncements.

What did the Tribunal hold?

The Tribunal held that the assessees are entitled to exemption for retrenchment compensation under Section 10(10B) and full exemption for leave encashment under Section 10(10AA). Delays in filing appeals before the CIT(A) were condoned.

What were the issues?

Whether retrenchment compensation and leave encashment received by BSNL VRS optees are eligible for exemption under the Income Tax Act, and whether appeals filed with delay are maintainable.

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 Shri Narasimha Bhat Nandavara, 5/152/12 Sri Kamakshi The Income Tax Kripa, ITA No. Officer, Behind Gokul dairy, 2020-21 660/Bang/2026 Ward – 1, Urwastore, Mangalore. Ashok nagara, Mangaluru – 575 006. PAN: AESPB0374C Shri Kiran Vinayak Naik, C/o. Padvekar Law The Deputy Chambers, Commissioner of 2020-21 ITA Nos. 1526 & 408, Maker Bhavan, Income Tax, & 1527/Bang/2026 No. 3, 21, New Marine Circle – 1(1), 2021-22 Lines, Hubli Mumbai – 400 020. PAN: AAMPN4986E Shri Kumaravel Duraisamy, Flat no. 255, 1st Floor, The Income Tax Mahaveer Willow, ITA No. Officer, Behind St Francis Church 2020-21 1535/Bang/2026 Ward – 3(3)(1), Valagerehalli, Bengaluru. Kengeru Satellite Town, Bengaluru – 560 060. PAN: ABQPD5395N Shri Rajappa Vittal Hegade, MIG 14/303, Akshay Park The Income Tax ITA No. Gokul Road, Officer, 2020-21 1611/Bang/2026 Hubli, Ward – 2(1), Hubli – Dharwad. Hubli. Karnataka – 580 030. PAN: AAJPH1434L ITA Nos. 660/Bang/2026 & Others Assessment Appeal No. Appellant Respondent Y

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