VENKATA SURESH KUMAR BOLLINENI,HYDERABAD vs. INCOME TAX OFFICER, WARD-1, ONGOLE

ITA 2116/HYD/2026Status: DisposedITAT Hyderabad09 October 2026AY 2021-2220 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the compensation received by the assessee from BSNL under the Voluntary Retirement Scheme – 2019 is exempt under Section 10(10B) of the Income-tax Act, 1961. The Tribunal noted that the Addl. JCIT(A) had dismissed the appeal on technical grounds (delay and classification as a workman) without deciding the merits of the exemption claim. The Tribunal relied on numerous judicial precedents from various Benches of the ITAT and the jurisdictional High Court, which consistently held that compensation received by BSNL employees under the VRS-2019 scheme is akin to retrenchment compensation and eligible for exemption under Section 10(10B). The Tribunal directed the Assessing Officer to verify the claim and allow the exemption under Section 10(10B), and consequently determine the tax payable/refundable, including interest under Section 244A. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Venkata Suresh Kumar Bollineni, an individual employed with BSNL, opted for the Voluntary Retirement Scheme (VRS) – 2019 and received compensation of Rs. 10,61,251/-. This amount was offered to tax in his return for Assessment Year 2021-2022, which was processed under Section 143(1) without any demand. Subsequently, the assessee filed an appeal before the Addl. JCIT(A)-4, Chennai, seeking exemption for this compensation under Section 10(10B) of the Income-tax Act, 1961, citing ignorance of law and incorrect professional advice. The appeal was filed with a delay of 1455 days. The Addl. JCIT(A) dismissed the appeal on grounds of delay and by treating the assessee as not a workman as per Section 10(10B) conditions, without deciding on merits.

What were the issues?

1. Whether the delay in filing the appeal before the learned CIT(A) ought to be condoned, considering the genuine circumstances beyond the appellant's control and in the interest of substantial justice, as argued by the Assessee. The Revenue's contentions are not recorded. 2. Whether the learned Addl. CIT(A) was justified in dismissing the appeal and sustaining the taxation of retrenchment compensation of Rs. 10,61,251/- which is claimed to be fully exempt from tax under Section 10(10B) of the Income-tax Act, 1961, as argued by the Assessee. The Revenue's contentions are not recorded. 3. Whether the learned Addl. CIT(A) erred in law by holding that a fresh claim for exemption cannot be entertained at the appellate stage when it was not made in the original return of income, ignoring the settled legal position that appellate authorities determine correct tax liability, as argued by the Assessee. The Revenue's contentions are not recorded. 4. Whether the learned CIT(A) failed to follow CBDT Circular No. 14 of 1955, which obligates the Department to assist taxpayers in claiming lawful reliefs and exemptions, as argued by the Assessee. The Revenue's contentions are not recorded. 5. Whether the compensation received was a capital receipt not in the nature of income and hence not chargeable to tax under the Act, as argued by the Assessee. The Revenue's contentions are not recorded.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 143(1),Section 244A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD

Before: SHRI VIJAY PAL RAO & SHRI MANJUNATHA G.

Pronounced: 09.10.2026

PER VIJAY PAL RAO, VICE PRESIDENT:

This appeal by the Assessee is directed against the Order dated 30.04.2026 of the learned Addl JCIT(A)-4, Chennai for the assessment year 2021-2022. 2. The Assessee has raised the following grounds of appeal:

1.

“The order of the Ld. Addl. CIT(A) is not correct either on facts or in law and in both.

2.

The Ld. Ad

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 1,316 judgments and leading authorities on Section 10(10B) →

Recent GST High Court judgments

Search GST case law →