RAGHAV KHIMJIBHAI SAVALIYA,RAJKOT vs. ACIT/JCIT (APPEALS), GURUGRAM, HARYANA

ITA 1041/RJT/2026Status: DisposedITAT Rajkot01 October 2026AY 2021-226 pages
AI SummaryRemanded

What were the facts?

Ten appeals were filed by various assessees for Assessment Years 2020-21 and 2021-22 against orders passed by the National Faceless Appeal Centre (NFAC), Delhi/CIT(A), which arose from orders passed by the Assessing Officer under section 143(3) read with section 144B of the Income Tax Act, 1961. The common issue involved compensation received by employees of BSNL on account of retrenchment under a Central Government-approved scheme, which the assessees claimed was exempt under Section 10(10B) of the Act. The Assessing Officer rejected this claim and made additions. The assessees' appeals to the CIT(A) were unsuccessful, leading to these appeals before the Tribunal.

What did the Tribunal hold?

The Tribunal noted that the Ld. CIT(A) had dismissed the appeals without considering the BSNL Scheme of retirement, which was approved by the Central Government. The Tribunal found this to be a factual error and a violation of the principle of natural justice, as the scheme was not examined in the right perspective. Therefore, the Tribunal accepted the assessees' prayer for an opportunity to plead their cases before the Ld. CIT(A). The orders of the Ld. CIT(A) were set aside, and the issues were remanded to the Ld. CIT(A) for fresh consideration. The assessees were granted liberty to produce sufficient evidence. For statistical purposes, all appeals were allowed.

What were the issues?

1. Whether the compensation received by BSNL employees under a Central Government-approved voluntary retirement scheme constitutes a capital receipt and is therefore not taxable, or if it is exempt under Section 10(10B) of the Income Tax Act, 1961. Assessee's contentions: The compensation received is towards loss of employment, making it a capital receipt. It is fully exempted under Section 10(10AA) of the Act. The CIT(A) erred in dismissing the appeal and rejecting the claim for exemption under Section 10(10B) without examining the Central Government's scheme for BSNL employees. The matter should be restored to the CIT(A) for examination of the scheme and adjudication. Revenue's contentions: The Ld. DR did not raise any objection to the matters being remitted back to the file of the Ld. CIT(A) for examination of the BSNL employees' scheme and subsequent adjudication.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10AA),Section 143(3),Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

ITA No. 1072/RJT/2026
ITA No. 1114/RJT/2026

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

आयकर अपीलीय अिधकरण, राजकोट "यायपीठ, राजकोट । In The Income Tax Appellate Tribunal, “SMC” Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member आयकरअपीलसं/.ITA No. 1072/RJT/2026 "नधा"रणवष"/ Assessment Year: 2020-21 Bhimji Bhikhabhai Tukadiya ITO WD 2(3), PORBANDAR Deep City Near Gandhi Park, Income Tax Office, 2nd Storey, Vs. Yug Bajaj & Prashant Pan Kuber Landmark, Opp Sadhna Street, Porbandar, Studio, S.V.P. Road, Porbandar, Porbandar Gujarat 360575 Gujarat-360575 "थायीलेखासं /. जीआइआरसं /. PAN/GIR No.: AATPT2832Q (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रतीक"ओरसे/Assessee by : Shri Kumar Pandya, Ld.AR राज"वक"ओरसे/Revenue by : Shri Ganesh Iyer, Ld. Sr. DR

आयकरअपीलसं/.ITA No. 1114/RJT/2026 "नधा"रणवष"/ Assessment Year: 2021-22 Ramesh Mohanbhai Vara ITO WD 1, JND/ Gujarat-362015 Junagadh, Gujarat-362001 "थायीलेखासं /. जीआइआरसं /. PAN/GIR No.: ABEPV3767G (अपीलाथ"/Appellant) (""यथ"/Respondent)

आयकरअपीलसं/.ITA No. 1115 & 1116/RJT/2026 "नधा"रणवष"/ Assessment Year: 2020-21& 2021-22 Ajitkumar Navalshankar Pandya ITO WD

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 10(10B)

All 1,303 judgments and leading authorities on Section 10(10B) →

Recent GST High Court judgments

Search GST case law →