VENKATADRIHARAM RAJAGOPAL RANGANATHAN,CHENNAI vs. INCOME TAX OFFICER NON CORPORATE WARD 4(6), CHENNAI

ITA 3145/CHNY/2026Status: DisposedITAT Chennai04 August 2026AY 2020-217 pages
AI SummaryAllowed

What were the facts?

The assessee, an employee of BSNL, opted for a Voluntary Retirement Scheme (VRS) in 2019-20 and received ex-gratia compensation. Initially, the assessee claimed exemption under Section 10(10C) but later sought to claim exemption under Section 10(10B) as retrenchment compensation.

What did the Tribunal hold?

The Tribunal held that the compensation received under the BSNL VRS 2019 scheme was in substance retrenchment compensation and thus eligible for full exemption under Section 10(10B) of the Income Tax Act, 1961. The Tribunal directed the Assessing Officer to allow the claim.

What were the issues?

Whether the ex-gratia compensation received under the BSNL VRS 2019 scheme qualifies as retrenchment compensation for exemption under Section 10(10B) of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10C)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: HONOURABLE SHRI GAGAN GOYAL & SHRI MANU KUMAR GIRI

Hearing: 22.07.2026Pronounced: 04.08.2026

PER GAGAN GOYAL, AM: This is an appeal preferred by the assessee against the order of Ld. Addl. / JCIT (A)-2, Gurugram (hereinafter referred as the ‘Ld. Addl. / JCIT (A)-2’) dated 29.03.2026 for the Assessment Year (hereinafter referred as the ‘AY’) 2020-

21.

GROUDS OF APPEAL

1.

The Commissioner of Appeal (CIT A) failed to take into account the fact that consequent to heavy losses for

The order continues below.

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