PISSAY NARASIMHAMURTHY HARISHKUMAR,BANGALORE vs. INCOME TAX OFFICER, BANGALORE

ITA 1859/BANG/2026Status: DisposedITAT Bangalore23 June 2026AY 2020-2111 pages
AI SummaryAllowed

What were the facts?

Assessees, employees of BSNL who opted for VRS, received retrenchment compensation and leave encashment. They initially offered the compensation as taxable income but later sought exemption under Section 10(10B) and Section 10(10AA) of the Income Tax Act, citing tribunal decisions. Their appeals before the CIT(A) were dismissed on grounds of limitation.

What did the Tribunal hold?

The Tribunal held that the CIT(A) ought to have condoned the delay in filing appeals, considering numerous similar cases where delays were condoned and exemptions were granted. The Tribunal allowed exemption for retrenchment compensation under Section 10(10B) and entire leave encashment under Section 10(10AA).

What were the issues?

Whether retrenchment compensation and leave encashment received by BSNL VRS optees are eligible for exemption, and whether appeals dismissed on grounds of limitation should be admitted.

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 BALAKRISHNAN S, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K., JUDICIAL MEMBER

Assessment Appeal No. Appellant Respondent Year

Shri Thimmappa Gowda Anthibettu, 3 239/4a, Srinivasa Jyothi The Income Tax Jr College Crs Road, 2020-21 ITA Nos. 1831 & Officer, Kasaba Sullia, & 1832/Bang/2026 Ward – 1, Dakshina Kannada, 2021-22 Puttur Puttur. Karnataka – 574 329. PAN: ADWPA4715D

Shri Shankaran Arasan, No. 40 I C Cross ITC Colony Main Road, ITA No. Nanjappa Reddy 2020-21 1856/Bang/2026 Grapegarde, Yeshwanthpur, Bengaluru – 560 022. PAN: ARQPS9836D Shri Pissay Narasimhamurthy The Income Tax Harishkumar, 2021-22 ITA Nos. 1857 & Officer, 184, 1st Main Road, & 1859/Bang/2026 Ward – 3(3)(1), Mahalakshmi Layout, 2020-21 Bangalore. Bangalore – 560 086. PAN: AAEPH0034K Shri Venkata Ramana Reddy, No. 663, 3rd Cross, 2021-22 ITA Nos. 1860 & Subbaiahnapalya, & 1910/Bang/2026 Maruthi Sevanagar S.O, 2020-21 North, Bangalore – 560 033. PAN: AFAPR2612C ITA Nos. 1831/Bang/2026 & Others Assessment Appeal No. Appellant Respondent Year Ms. Parvathy Gopalan, Villa no. 2, Godrej Gold County, Chikkabidarakallu Village, ITA

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