JAYAKUMAR,DAKSHINA KANNADA vs. ITO WARD 2(1), MANGALORE

ITA 1005/BANG/2026Status: DisposedITAT Bangalore29 May 2026AY 2020-2111 pages
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What were the facts?

Assessees, former employees of BSNL who retired under the BSNL VRS Scheme, 2019, received retrenchment compensation and leave encashment. They claimed full exemption for these amounts, which was partially denied by the lower authorities.

What did the Tribunal hold?

The Tribunal held that the compensation received under the BSNL VRS Scheme, 2019, qualifies for exemption under Section 10(10B) of the Income Tax Act, 1961, as retrenchment compensation. It also held that leave encashment is eligible for full exemption under Section 10(10AA).

What were the issues?

Whether compensation received under the BSNL VRS Scheme, 2019, is eligible for exemption as retrenchment compensation, and whether leave encashment is fully exempt.

Which sections of the Income-tax Act were involved?

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

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Heard together (3 matters)

ITA 992/BANG/2026
ITA 1005/BANG/2026
ITA 1284/BANG/2026

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अिधकरण, ब"गलु" पीठ", ब"गलु" INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCHES, BANGALORE BENCH: SMC BEFORE HON’BLE SHRI PRASHANT MAHARISHI, VICE PRESIDENT

ITA 992/BANG/2026 िनधा"रण वष"/Assmt. Year: 2020-21 RENUKA NARASIMHA PRABHU ITO WARD 1(1) 202, MOSACO APARTMENT , CENTRAL REVENUE NEHRU AVENUE, CROSS BUILDING (CR BUILDING) ROAD,KODIYALBAIL,SO , ATTAVAR, Vs. MANGALURU-575003, MANGALURU-575001, KARNATAKA. KARNATAKA. (अपीलाथ" Appellant) (""थ" Respondent) Permanent Account Number of Assessee: AAPPV4523L

ITA 1005/BANG/2026 िनधा"रण वष"/Assmt. Year: 2020-21) JAYAKUMAR ITO WARD 2(1) MANJUSHRI 3-17-F2, ATTAVAR,MANGALURU- MANGALURU-575022, 575001, KARNATAKA KARNATAKA. (अपीलाथ" Appellant) (""थ" Respondent) Permanent Account Number of AASPJ9785B Assessee:

सुनवाई की तारीख / Date of conclusion of hearing: 25-May-2026

ITA 1005/BANG/2026 & CONNECTED APPEALS

ITA 1284/BANG/2026 िनधा"रण वष"/Assmt. Year: 2020-21) MYSORE-575010, MYSORE-575023, KARNATAKA (अपीलाथ" Appel

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