ARUP KUMAR DAS,ASANSOL vs. I.T.O., WARD - 2(1), ASANSOL

ITA 2753/KOL/2026Status: DisposedITAT Kolkata09 October 2026AY 2021-202212 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal allowed the appeals of the assessees. The primary issue was the eligibility of compensation received under the BSNL VRS-2019 scheme for exemption under Section 10(10B) of the Income Tax Act, 1961. The Tribunal noted that the assessees had filed appeals after becoming aware of favorable judgments from co-ordinate benches of the ITAT, such as the Chandigarh Bench in Harish Kumar vs. ITO and the Ahmedabad Bench in Jayeshkumar Tulsidas Sutaria vs. ITO. These judgments, dealing with similar facts and the same BSNL VRS-2019 scheme, had allowed the exemption. The Tribunal found that the assessees were entitled to the benefit of Section 10(10B) and that the compensation amount was not taxable as per the Act. The Tribunal also observed that the Income Tax Department should not collect tax on income that is exempt under Section 10(10B). The Tribunal respectfully followed the cited judgments and allowed the appeals, directing that the assessees be granted the exemption.

What were the facts?

The appeals concern assessment years 2020-2021 and 2021-2022. The assessees, employees of Bharat Sanchar Nigam Limited (BSNL), availed the BSNL Voluntary Retirement Scheme (VRS) 2019. They received compensation, including ex-gratia payments, which were partly offered to tax in their returns due to lack of awareness of exemption provisions. The Centralized Processing Centre (CPC) processed their returns under Section 143(1) without granting exemptions. The assessees later became aware of exemption under Section 10(10B) of the Income Tax Act, 1961, following ITAT judgments. They filed appeals before the CIT(A) after a significant delay, seeking condonation. The CIT(A) condoned the delay but dismissed the appeals, holding that the grievance did not emanate from the intimation order and that exemption should have been claimed via a revised return or by seeking condonation from the Principal Commissioner.

What were the issues?

1. Whether the compensation received by the assessee under the BSNL VRS-2019 scheme is eligible for exemption under Section 10(10B) of the Income Tax Act, 1961, despite not being claimed in the original return or revised return. Assessee's Contention: The assessee argued 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, which held compensation under the same BSNL VRS-2019 scheme as exempt under Section 10(10B), the assessee sought this exemption. They relied on several ITAT judgments, including Harish Kumar and Jayeshkumar Tulsidas Sutaria, which allowed similar claims. Revenue's Contention: The revenue argued that the assessee failed to offer any explanation or supporting documents before the CPC or the CIT(A). The CIT(A) dismissed the appeal for not furnishing satisfactory explanations within the stipulated time. The revenue relied on the orders of the lower authorities and pleaded to uphold them.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

ITA No. 2802 /KOL/2026
ITA No. 2786 /KOL/2026

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

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA

SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

ITA Nos. 2752 & 2753/KOL/2026 Assessment Years : 2020-2021 & 2021-2022 AS-3,/9/Scheme-II, Ward – 2(1), Asansol, Kalyanpur Housing Estate, Income Tax Office, Paschim Bardhaman, Asansol- Aaykar Bhawan, 116 713305 Vivekananda Sarani, PO Kanyapur, Dist: Purba [PAN: ADHPD3605N] Burdwan - 713341 APPELLANT RESPONDENT

Assessee by : None Revenue by : Shri Pampa Ray, Sr. DR Date of hearing : 08.10.2026

ITA No. 2802 /KOL/2026 Assessment Year : 2020-2021 Bhorer Shiuli, Flat – 202, 2nd Ward No. 52(1), Floor, 2/1, Jagat Banerjees Bamboo Villa, 169 A.J.C. Lane, Bally, Howrah - 711201 Bose Road, Kolkata - 700014 [PAN: ADTPG4556H] APPELLANT RESPONDENT

Assessee by : Shri Gautam Chanda & Soumava Ganguly, ARs : Shri Pampa Ray, Sr. DR Date of hearing : 07.10.2026

ITA No. 2786 /KOL/2026 Assessment Year : 2021-2022 CC-09/303, Peerless Nagar, Ward No. 54(1), Barrackpur-II, North 24, Income Tax Office, Parganas - 700114 Bamboo Villa, 169 AJC Bose Road, Ward No. [PAN: AKEP

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