BHARAT DUDHABHAI PURABIYA,AHMEDABAD vs. INCOME TAX OFFICER WARD 7(2)(1), AHMEDABAD, INCOMETAX OFFICE, VEJALPUR

ITA 660/AHD/2026Status: DisposedITAT Ahmedabad24 June 2026AY 2020-20218 pages
AI SummaryPartly Allowed

What were the facts?

The assessee received compensation under BSNL VRS-2019, inadvertently offered it to tax, and later sought exemption under Section 10(10B) in appeal. The CIT(A) dismissed the appeal as time-barred and refused to condone the delay.

What did the Tribunal hold?

The Tribunal held that appellate authorities can entertain fresh claims and condoned the delay in filing the appeal, allowing exemption under Section 10(10B) for the BSNL VRS compensation. However, an additional ground regarding leave encashment exemption under Section 10(10AA) was dismissed as the relevant notification was not applicable to the assessment years.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal as time-barred and refusing to condone the delay for a claim of exemption under Section 10(10B) for VRS compensation. Whether an additional ground regarding leave encashment exemption under Section 10(10AA) is admissible for the relevant assessment years.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10AA),Section 143(1),Section 250,Section 249(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SMC” BENCH, AHMEDABAD

Per Rahul Chaudhary, Judicial Member:

1.

These are two appeals filed by the same Assessee against two separate Orders passed by the Commissioner of Income Tax, Appeal ADDL/JCIT(A) - Chennai [hereinafter referred to as ‘the CIT(A)’] for the Assessment Years 2020-2021 and 2021-2022. Since the issues involved in both the appeals are common and arise from the same factual matrix identical, both the appeal were heard together and are therefore, being disposed off by way of a common order.

2.

We would first take up ITA No.660/AHD

The order continues below.

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