JASHVANTBHAI ASHABHAI PATEL,AHMEDABAD vs. ITO, WARD-7(2)(1), AHMEDABAD

ITA 1145/AHD/2026Status: DisposedITAT Ahmedabad29 June 2026AY 2021-226 pages
AI SummaryAllowed

What were the facts?

The assessee, a former BSNL employee, received compensation under a Voluntary Retirement Scheme (VRS). Due to lack of awareness, this amount was offered to tax, and TDS was deducted. The assessee later learned that such compensation might be exempt under Section 10(10B) of the Income Tax Act.

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) of the Income Tax Act, following the decisions of its coordinate benches. The assessee is entitled to this exemption.

What were the issues?

Whether the retrenchment compensation received under a Voluntary Retirement Scheme is exempt from tax under Section 10(10B) of the Income Tax Act, even if not claimed in the original return.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 250,Section 143(1)

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 Parin Shah, A.R, Smt. Mamta Singh, Sr. DR
For Respondent: Smt. Mamta Singh, Sr. DR
Hearing: 24/06/2026

Per Sanjay Garg, Judicial Member:

The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-1, Chennai (hereinafter referred to as “CIT(A)”), dated 10.02.2026 passed under Section 250 of the Income Tax Act, 1961 (hereinafter

ITA No.1145/Ahd/2026[Jashvantbhai Ashabhai Patel vs. ITO] A.Y. 2021-22 - 2 –

referred to as the “Act”) and relates to Assessment Year (A.Y.) 2021-22. 2. The assessee has taken following grounds in this appeal:

“1. The order passed by lower authorities is bad

The order continues below.

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