PRASANTA KUMAR GOGOI,MUMBAI vs. ITO, WARD, GOLAGHAT, GOLAGHAT

ITA 527/GTY/2026Status: DisposedITAT Guwahati06 October 2026AY 2021-202226 pages
AI SummaryAllowed

What were the facts?

The assessee, employed with Bharat Sanchar Nigam Limited (BSNL), opted for the BSNL VRS-2019 scheme and received compensation. Due to a lack of awareness regarding exemption under Section 10(10B) of the Income-tax Act, 1961, the assessee offered this compensation to tax in their return of income for Assessment Years 2020-21 and 2021-22. Tax was deducted at source. No exemption was claimed in the original or revised return. The CPC issued an intimation under Section 143(1) without granting exemption. The assessee later became aware of the eligibility for exemption under Section 10(10B) following a judgment by the ITAT Chandigarh Bench in a similar case. The assessee appealed to the CIT(A), who dismissed the appeal, stating the grievance did not emanate from the order appealed against and that relief should have been claimed in a revised return.

What did the Tribunal hold?

The Tribunal held that the assessee is eligible for exemption under Section 10(10B) of the Income-tax Act, 1961, on the compensation received under the BSNL VRS-2019 scheme. The Tribunal found that the assessee filed the claim before the CIT(A) and that since the income is not taxable, the assessee is eligible for a refund of the TDS. The reasoning was based on the principle that tax authorities should grant all lawful reliefs even if not claimed by the assessee, citing CBDT Circular No. 14 of 1955. The Tribunal also respectfully followed the judgment of the ITAT Chandigarh Bench in Harish Kumar vs. ITO, which dealt with a similar set of facts concerning the BSNL VRS-2019 scheme. The appeals of the assessee were allowed, and the assessee is eligible for the refund of TDS.

What were the issues?

1. Whether the assessee is eligible for exemption under Section 10(10B) of the Income-tax Act, 1961, on the compensation received under the BSNL VRS-2019 scheme, even though it was not claimed in the original or revised return of income. Assessee's contention: The assessee argues that due to a lack of awareness of legal provisions at the time of filing the return, the compensation was inadvertently offered to tax. Following the ITAT Chandigarh Bench's decision in Harish Kumar vs. ITO, the assessee contends that the compensation is exempt under Section 10(10B). The assessee also relies on CBDT Circular No. 14 of 1955, which obligates tax authorities to grant lawful reliefs even if not claimed by the assessee. Revenue's contention: The judgment does not record specific arguments from the Revenue. However, the CIT(A)'s order implies that the assessee should have claimed the exemption in a revised return, and since this was not done, the appeal was dismissed.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

ITA No. 512-547/GTY/2026 & other appeals Assessment Years: 2020-21 & 2021-22 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-GUWAHATI ‘e-COURT’, DB, KOLKATA [Hybrid Court Hearing] Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Laxmi Prasad Sahu, Accountant Member

ITA Nos. 512 & 513/GTY/2026 Assessment Years: 2020-21 & 2021-22 C/o. Padvekar Law Ward-1(2), Guwahati, Chambers, Aayakar Bhawan, 408, Maker Bhavan No. 3, Christian Basti, G.S. 21, New Marine Lines, Road, Guwahati- Mumbai-400020, 781005, Assam Maharashtra [PAN:AFUPD0282N] APPELLANT RESPONDENT

Assessee by : Shri Tazil R. Padvekar, Advocate Revenue by : Shri P.S. Thuingaleng, D.R. & ITA Nos. 514 & 515/GTY/2026 Assessment Years: 2020-21 & 2021-22

Takhellambam Joykumar Singh, Vs. Assistant Commissioner of C/o. Padvekar Law Income Tax, Chambers, Circle, Imphal, 408, Maker Bhavan No. 3, Aayakar Bhawan, Jail 21, New Marine Lines, Road, Old Lambulane, Mumbai-400020, Imphal-795001, Maharashtra Manipur [PAN:CIBPS3326J] APPELLANT RESPONDENT

Assessee by : Shri Tazil R. Padvekar, Advocate Revenue by : Shri P.S. Thuingaleng, D.R. 1

ITA No. 512-547/GTY/2026 & other appeals Asse

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