RAJARATNAM ELANGO YESURAJ,THIRUMANGALAM vs. INCOME TAX OFFICER, NON CORP WARD 1(1), MADURAI

ITA 3292/CHNY/2026Status: DisposedITAT Chennai04 August 2026AY 2021-227 pages
AI SummaryAllowed

What were the facts?

The assessee received compensation under a BSNL Voluntary Retirement Scheme (VRS). Initially, he claimed exemption under Section 10(10C) in his return. Later, realizing it might be eligible for exemption under Section 10(10B), he filed a rectification application which was dismissed. The First Appellate Authority also dismissed his appeal.

What did the Tribunal hold?

The Tribunal held that the assessee was entitled to the benefit of Section 10(10B) of the Act. It was observed that the First Appellate Authority erred in dismissing the appeal, and the Assessing Officer was directed to allow the claim.

What were the issues?

Whether compensation received under a VRS scheme is eligible for exemption under Section 10(10B) and if the appellate authority can entertain such a claim even if not originally made.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10C),Section 154,Section 250

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: 23.07.2026Pronounced: 04.08.2026

PER GAGAN GOYAL, AM: This is an appeal preferred by the assessee against the order of Ld. Addl. / JCIT (A)-3, (hereinafter referred as the ‘Ld. Addl. / JCIT (A)-3), Bengaluru dated 25.03.2026, for the Assessment Year (hereinafter referred as the ‘AY’) 2021-22. GROUDS OF APPEAL

1.

That on the facts, circumstances and legal position of the case, the Worthy JCIT (A)-3, Bengaluru in

The order continues below.

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