BANDAEHALLI GURUVAIAH SANGAMESHWARAIAH,TUMKUR vs. ITO WARD 1(1) TUMKUR, TUMKUR

ITA 1315/BANG/2026Status: DisposedITAT Bangalore12 June 2026AY 2020-215 pages
AI SummaryAllowed

What were the facts?

The assessee received compensation under the BSNL Voluntary Retirement Scheme, 2019, and claimed exemption under section 10(10C) instead of the applicable section 10(10B). The CIT(A) dismissed the appeal due to delay without considering the fresh claim. The assessee also claimed exemption for accumulated leave encashment under section 10(10AA) up to Rs. 3 Lakh.

What did the Tribunal hold?

The Tribunal held that compensation received under the BSNL VRS, 2019, is eligible for exemption under section 10(10B) and directed the AO to allow the exemption. It also held that the revised limit of Rs. 25 Lakh for exemption under section 10(10AA) is applicable retrospectively.

What were the issues?

Whether compensation received under BSNL VRS is exempt under Section 10(10B) and if the revised limit for leave encashment exemption under Section 10(10AA) is retrospective.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Shambhu Sharma Advocate

PER SANDEEP SINGH KARHAIL, JUDICIAL MEMBER

1.

The assessee has filed the present appeal against the impugned order dated 31.01.026 passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Additional/Joint Commissioner of Income Tax (Appeals)–2, Guwahati, [learned Addl./Joint CIT(A)], for the assessment year 2020-21. 2. The first issue that arises for consideration pertains to the claim of exemption under section 10(10B) of the Act in respect of the compensation

ITA No.:1315/Bang/2026

received on retrenchment under the BSNL Voluntary Retirement Scheme, 2019 (“BSNL VRS, 2019”).

3.

The brief facts of the case are tha

The order continues below.

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