Voluntary retirement compensation treated as retrenchment compensation and held exempt under section 10(10B).

Compensation received under the BSNL voluntary retirement scheme was treated as retrenchment compensation and held eligible for exemption under section 10(10B) of the Income-tax Act, 1961. The Tribunal followed earlier co-ordinate bench decisions involving the same scheme and the same exemption provision, and on that basis accepted the assessee's claim. Consequential relief was granted, and the issue was decided in favour of the assessee.

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Issues: Whether compensation received under the BSNL voluntary retirement scheme was exempt under section 10(10B) of the Income-tax Act, 1961.

Analysis: The amount received under the voluntary retirement scheme was treated as retrenchment compensation. The issue was held to be covered by earlier co-ordinate bench decisions on the same scheme and on the same statutory exemption. Following those decisions, the Tribunal accepted that the compensation was eligible for exemption under section 10(10B) and that the assessee was entitled to consequential relief.

Conclusion: The issue is decided in favour of the assessee. The compensation is exempt under section 10(10B) of the Income-tax Act, 1961.

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