2026 (4) TMI 976

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....impugned order emanated from the order of the CPC, Bengaluru (for brevity the 'Ld. AO') order passed under section 143(1) of the Act, date of order 30.11.2021. 2. The brief facts of the case is that the assessee was employed with BSNL which is under administrative control of Department of Telecommunications, Govt. of India. In order to revive BSNL, the Union Cabinet in its meeting dated 23.10.2019 approved the revival plan of BSNL and Mahanagar Telephone Nigam Limited, Mumbai (MTNL) vide Office Memorandum dated 29.10.2019 issued by Department of Telecommunications. As part of the revival package the Government decided to reduce the work force through BSNL Voluntary Retirement Scheme, 2019 to the employees of aged 50 years and above and o....

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.... of exemption u/s. 10(10B) of the Act has been made for the first time and the same has been admitted by the Tribunal and relief has been granted. Reliance placed on the decision of Coordinate Bench, Ahmedabad in the case of Jayesh Kumar Tulsidas Sutaria Vs. ITO reported in (2026) 183 taxmann.com 587 (Ahmedabad-Trib.). 4. The Ld. AR contended that the issue is no more res judicata. Though the appellate order was passed ex parte on the ground of limitation but the same issue is already dealt by the Coordinate Bench of ITATs as follows:- (i) Shraddha Pralhad Arote vs ITO Ward 2, ITA No. 262 and 261/Pun/2026 date of order 24.03.2026. (ii) Meghmala Sudhir Pathak vs. ITO, ITA No. 290 and 293/Pun/2026 date of order 27.03.2026....

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.... decision of Coordinate Bench, Chandigarh in the case of Harish Kumar vs. ITO Ward-5(5), Chandigarh -ITA No. 42/CHD/2025 order dated 30.05.2025 has decided the issue in favour of the assessee by observing as under: 3. The assessee was employed with Bharat Sanchar Nigam Limited (BSNL), a Government of India enterprise. BSNL notified the Voluntary Retirement Scheme (VRS) 2019 on 04.11.2019, which was duly approved and implemented by the employer. The assessee opted for the scheme and accordingly received compensation under the VRS, as per the terms laid down by BSNL. It is submitted that the assessee had not been paid regular salary for several months prior to opting for the scheme and was under severe financial and professional unce....

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....t has also failed to provide any reasonable ground that could assist the first appellate authority to draw sufficient cause for the inordinate delay of 1,396 days in filing of this appeal. The inordinate delay in the present case, if condoned, would make the term "Sufficient cause" in section 249(3) of the Income Tax Act, 1961 hollow and meaningless. 20. In light of the facts of the case, provisions of the Income Tax Act, 1961 and judicial decisions in the matter as discussed above, I am constrained to conclude that the appellant has failed to submit any reasonable ground for condoning the inordinate delay of 1,396 days ie almost four years in filing this appeal. Being bereft of any sufficient cause as envisaged in section 249(3) o....

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....10B) would be applicable to all employees covered by the scheme. 17. In light of the above decisions which are squarely applicable on the facts of instant cases and the consistent view taken by the Coordinate Benches, I am of the considered view that the alleged sum is in the nature of Retrenchment Compensation received by the assessee(s) in appeal, under the forced retirement scheme as per the standing orders dated 29.10.2019 issued by the Union Cabinet for the revival plan of BSNL/MTNL and such compensation falls under the provisions of section 10(10B) of the Act and not u/s. 10(10C) of the Act and therefore the alleged sum is in the nature of Capital receipt exempt from tax. In order to get relief as has been directed in this or....

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....and relied on the orders of the revenue authorities. However, the Ld. DR was unable to place on record any judicial precedent contrary to the submissions advanced by the Ld. AR. 7. We have heard the rival submissions and perused the material available on record, including the judicial precedents relied upon by the Ld. AR. It is an undisputed fact that the Ld. CIT(A) has dismissed the appeal in limine on account of delay without adjudicating the issue on merits. We find that the assessee had placed on record an explanation for the delay and the issue involved relates to a substantive claim of exemption, which has been consistently adjudicated in favour of similarly placed assessee's by various Coordinate Benches of the Tribunal. Respectfu....