JAYAGANESAN VEERABADRAN,TIRUCHIRAPPALLI vs. DCIT CIRCLE1(1), TRICHY, TIRUCHIRAPPALLI

ITA 2159/CHNY/2026Status: DisposedITAT Chennai06 July 2026AY 2020-217 pages
AI SummaryAllowed

What were the facts?

The assessee received ex-gratia compensation under the BSNL Voluntary Retirement Scheme (VRS-2019), which was introduced as part of a government revival package. The assessee initially offered this compensation for tax but later claimed exemption under Section 10(10B) of the Income Tax Act.

What did the Tribunal hold?

The Tribunal held that the compensation received under BSNL VRS-2019 is in the nature of retrenchment compensation and eligible for exemption under Section 10(10B). The assessee's designation as Divisional Engineer does not disqualify them from this exemption, as the nature of the scheme and compensation is key.

What were the issues?

Whether compensation received under BSNL VRS-2019 qualifies for exemption under Section 10(10B), and if the assessee's designation as Divisional Engineer excludes them from the definition of 'workman'.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 56(2)(xi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: MS. PADMAVATHY S & SHRI MANU KUMAR GIRI

Hearing: 06.07.2026

PER MANU KUMAR GIRI, JM:

The captioned appeals filed by the assessee are directed against the separate orders of the ld. Commissioner of Income Tax (Appeals), Addl./JCIT(A)-9, Delhi, both dated 16.03.2026 for Assessment Years 2020-21 and 2021-22. Since identical facts and common issues are involved, both the appeals were heard together and are disposed of by this consolidated order for the sake of convenience.

ITA No 2

The order continues below.

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