BELA BHANUSHANKAR DAVE,AHMEDABAD vs. ITO, WARD 7(2)(1), AHMEDABAD, AHMEDABAD

ITA 1305/AHD/2026Status: DisposedITAT Ahmedabad06 July 2026AY 2020-217 pages
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What were the facts?

The assessee received compensation under a BSNL VRS-2019 scheme and leave encashment. The assessee initially offered these amounts to tax due to lack of awareness of exemptions but later sought exemption under Section 10(10B) and 10(10AA) of the Income Tax Act, 1961. The CIT(A) denied the exemption, stating it was not claimed in the return.

What did the Tribunal hold?

The Tribunal held that the compensation received under the BSNL VRS-2019 scheme is eligible for exemption under Section 10(10B) and that leave encashment is also exempt. The Tribunal directed the Assessing Officer to grant the relief to the assessee.

What were the issues?

Whether compensation received under BSNL VRS-2019 and leave encashment are eligible for exemption under the Income Tax Act, even if not initially claimed in the return of income.

Which sections of the Income-tax Act were involved?

Section 10(10AA),Section 10(10B)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Vipul Gohil, AR
Hearing: 01/07/2026Pronounced: 06/07/2026

Per Sanjay Garg, Judicial Member:

The captioned both appeals relate to the same assessee and are against separate orders passed by the Ld. Commissioner of Income Tax (Appeals)-2, Coimbatore (hereinafter referred to as “CIT(A)”), both dated 20.03.2026 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2020-21 & 2021-22. ITA Nos.1305 & 1306/Ahd/2026[Bela Bhanushankar Dave vs. ITO] A.Ys.

The order continues below.

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