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Issues: (i) Whether the delay in filing the first appeal deserved condonation. (ii) Whether the amount received under the BSNL Voluntary Retirement Scheme, 2019 was retrenchment compensation exempt under section 10(10B) of the Income-tax Act, 1961 and not taxable as a capital receipt.
Issue (i): Whether the delay in filing the first appeal deserved condonation.
Analysis: The appeals were filed with delay on the basis of professional advice taken at the time of filing the returns. The explanation was found sufficient, and substantial justice was preferred over procedural lapse. The delay was therefore condoned and the matters were taken up for merits.
Conclusion: The delay in filing the first appeal was condoned in favour of the assessee.
Issue (ii): Whether the amount received under the BSNL Voluntary Retirement Scheme, 2019 was retrenchment compensation exempt under section 10(10B) of the Income-tax Act, 1961 and not taxable as a capital receipt.
Analysis: The Tribunal followed earlier coordinate bench decisions on identical BSNL VRS facts and held that the compensation paid under the revival-linked scheme was in substance retrenchment compensation. It accepted that the payment fell within section 10(10B), not section 10(10C), and treated the receipt as a capital receipt exempt from tax. The assessee was directed to file revised computation before the jurisdictional Assessing Officer for grant of consequential refund after verification.
Conclusion: The amount received under the BSNL Voluntary Retirement Scheme, 2019 was held exempt under section 10(10B) and the issue was decided in favour of the assessee.
Final Conclusion: The appeals were allowed after condoning the delay, and the compensation received under the BSNL voluntary retirement scheme was held not taxable as income.
Ratio Decidendi: Compensation paid under a BSNL revival-linked voluntary retirement scheme was treated as retrenchment compensation under section 10(10B) where the substance of the payment showed termination-linked compensation rather than taxable retirement benefits.
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