SUBRATA KUMAR MUKHERJEE,SURI, BIBHUM vs. D.C.I.T., CIRCLE - 3,, SURI

ITA 2608/KOL/2026Status: DisposedITAT Kolkata29 September 2026AY 2021-202218 pages
AI SummaryAllowed

What were the facts?

The appeals were filed by several assessees against orders passed by the Ld. CIT(A) under Section 250 of the Income Tax Act, 1961, arising from assessment orders under Section 143(1) and 154. The common issue involved the eligibility of compensation received under the BSNL Voluntary Retirement Scheme (VRS) 2019 for exemption under Section 10(10B). The assessees, employees of Bharat Sanchar Nigam Limited (BSNL), had opted for the VRS and received compensation. They initially offered this compensation to tax in their returns due to a lack of awareness regarding the exemption provisions. The Central Processing Centre (CPC), Bengaluru, processed their returns under Section 143(1) without granting any exemption. The assessees later became aware of the exemption possibility through ITAT judgments and sought relief.

What did the Tribunal hold?

The Tribunal held that the appeals of the assessees were to be allowed. The Tribunal noted that the assessees had inadvertently offered the compensation received under the BSNL VRS-2019 to tax due to a lack of awareness of the exemption available under Section 10(10B) of the Income Tax Act, 1961. The Tribunal found that the assessees had filed their claims before the Ld. CIT(A) and, since the income was not taxable, the assessees were eligible for a refund of the Tax Deducted at Source (TDS). The Tribunal respectfully followed the judgment of the Coordinate Bench in Harish Kumar vs. ITO Ward 5(5), Chandigarh, and similar other cases, which supported the assessee's case on similar facts. The Tribunal allowed all 10 appeals filed by the different assessees.

What were the issues?

1. Whether the Ld. CIT(A) erred in refusing to condone the delay and passing an order without considering the facts of the case, contrary to the spirit of the law? 2. Whether the Ld. CIT(A) erred in refusing to consider fresh evidence, leading to a denial of justice? 3. Whether the Ld. CIT(A) failed to apply his mind by not extending the benefit of the Board's Circular No. 14 (XL-35) dated 11.04.1955, thereby taking advantage of the assessee's ignorance? Assessee's Contentions: The assessee argued that due to a lack of awareness of legal provisions at the time of filing the return, they inadvertently offered the BSNL VRS-2019 compensation to tax. They relied on the ITAT Chandigarh Bench decision in Harish Kumar vs. ITO Ward 5(5), Chandigarh (ITA No. 42/CHD/2025, dated 30.05.2025), which held that compensation under the same BSNL VRS-2019 scheme is exempt under Section 10(10B), subject to Rule 2BA compliance. The assessee sought exemption for this compensation. Revenue's Contentions: The judgment does not record specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 250,Section 143(1),Section 154

AI-generated summary — verify with the full judgment below

आयकर अपीलीय अधिकरण कोलकाता ‘एसएमसी’ बेंच कोलकाता मे IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘SMC’ BENCH AT KOLKATA Before SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA No(s). 2534 & 2535/KOL/2026 Assessment Year(s) 2020-21 & 2021-22 Mrinmoy Bera I.T.O., Ward-3(1), Bankura 283/1/A, Kenduadihi, Income Tax Office (Ward Vs.

Bankura-I, Bankura, 3(1) Bankura), Bankura, Kenduadihi S.O, Bankura, West Bengal, 722102 West Bengal, 722102 (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) स्र्थायी खाता संख्या/PAN: ADLPB9956G उपधथिधत/Appearance: अपीलार्थी के ओर से/ Assessee represented by (AR) : Deepak Vyse, AR. प्रत्यर्थी के ओर से/ Department represented by (DR) : Bimal Chandra Das, Sr. DR. ITA No(s). 2642 & 2643/KOL/2026 Assessment Year(s) 2020-21 & 2021-22 Amitava Mukhopadhyay I.T.O., Ward-2(1), Asansol AS-2M/103, Kalyanpur Aayakar Bhawan, 116, Housing Estate, Ramkrishna Vivekananda Sarani, P.O.- Vs.

Mission SO, Sarshatali, Kanyapur, Asansol, West Burdwan, West Bengal, Bengal, 713341 713305 (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) स्र्थायी खाता संख्या/PAN: AIJPM4059N ITA No(s). 2534 & 2535/KOL/2026 2642 & 2643/KOL/2026 2644 & 2645/KOL/2026 2167/KOL/2026 2608/KOL/2026 2609/KOL/2026 2641/

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