TaxTMI 
TaxTMI 
2026 (6) TMI 1130
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..../2026, 2050/PUN/2026, 2083/PUN/2026, 2084/PUN/2026, 2085/PUN/2026 And 2086/PUN/2026 - -<br>Income Tax<br>Shri Dr. Dipak P. Ripote, Accountant Member And Shri Vinay Bhamore, Judicial Member For the Assessee : Shri Tanzil Padvekar (virtual) For the Revenue : Shri Sanjay Keshavrao Dhivare (virtually) ORDER PER BENCH : The captioned appeals at the instance of respective assessee(s) pertaining to A.Ys. 2020-21 and 2021-22 are directed against the separate orders framed by the Learned Additional/Joint Commissioner of Income Tax (Appeals) [Ld. Addl./JCIT(A)], passed u/s. 250 of the Income Tax Act, 1961 ('the Act'). 2. We have heard both the parties and perused the records. Since common issues have been raised in the above appeals we proceed to adjudicate these appeals by way of this consolidated order for the sake of convenience. All these appeals were heard together with the permission of Ld. AR and Ld. DR. 3. The common issue raised in these bunch of appeals is that whether the amount received from Bharat Sanchar Nigam Limited (BSNL) on account of the retirement through the BSNL Voluntary Retirement Scheme, 2019 is in the nature of Retrenchment Compensation and is a....
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....Leave Petition (Civil) Diary No.37247/2017 7. Shree Rajeshwar Sharma Vs. ITO - ITA No.870/CHD/2018 8. CIT Vs. Mahalakshmi Textile Mills Ltd.(1967) 66 ITR 710 (SC) 9. PCIT Vs. Karnataka State Cooperative Federation Ltd. (2021) 128 taxmann.com 1 (Karnataka) 10. CIT Vs. Pruthvi Brokers & Shareholders (2012) 23 taxmann.com 23 (Bombay) 6. The Ld. AR filed a chart which is reproduced here as under : BSNL Reason for Dismissal Appeal List (Pune) Listed on 18/06/2026 1 Ramesh Bhimshankar Budwatrao 2021-22 21-03-2026 ITA No.1890/PUN/2026 Dismissed on account of Delay. 2 Sunita Balasaheb Nandihalli 2020-21 23-03-2026 ITA No.1891/PUN/2026 Dismissed on account of Delay. 3 Sunita Balasaheb Nandihalli 2021-22 23-03-2026 ITA No.1892/PUN/2026 Dismissed on account of Delay. 4 Dattatraya Banshi Bhor 2020-21 20-03-2026 ITA No.1893/PUN/2026 Delay condoned, dismissed in merits (CIT(A) cannot entertain a new claim. 5 Dattatraya Banshi Bhor 2021-21 20-03-2026 ITA No.1894/PUN/2026 Delay condoned, dismissed in merits (CIT(A) cannot entert....
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....) cannot entertain a new claim. 24 Vasant Dattatraya Shinde 2021-22 12-03-2026 ITA No.2015/PUN/2026 Delay condomed, dismissed in merits (CITYA) cannot entertain a new claims. 25 Vandana Anant Kulkarni 2020-21 27-03-2026 ITA No.2033/PUN/2026 Delay condomed, dismissed on merits. 26 Vandana Anant Kulkarni 2021-22 27-03-2026 ITA No.2034/PUN/2026 Delay condoned, dismissed on merits. 27 Girish Waman Chaudhari 2020-21 26-03-2026 ITA No.2038/PUN/2026 Delay condoned, dismissed in merits (CTT(A) cannot entertain a new claim. 28 Girish Waman Chaudhari 2021-22 26-03-2026 ITA No.2039/PUN/2026 Delny condoned, dismissed in merits (CIT(A) cannot entertain a new claim. 29 Ashok Prabhakarrao Kulkarni 2020-21 12-03-2026 ITA No.2047/PUN/2026 Delay condoned, dismissed in merits (CIT(A) cannot entertain a new claim. 30 Ashok Prabhakarrao Kulkarni 2021-22 12-03-2026 ITA No.2048/PUN/2026 Delay condoned, dismissed in merits (CIT(A) cannot entertain a new claim. 31 Shirish Pravin Bandekar 2020-21....
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....nction between a "Going Concern" in revival and an undertaking in liquidation. 6. Section 10(10B), reproduced below, contains Explanation (a), which creates a deeming fiction; compensation paid at the time of "closing down of the undertaking" is deemed to be retrenchment: "[(10B) any compensation received by a workman under the Industrial Disputes Act, 1947 (14 of 1947), or under any other Act or Rules, orders or notifications issued thereunder or under any standing orders or under any award, contract of service or otherwise, [at the time of his retrenchment: Provided that the amount exempt under this clause shall not exceed- (i) an amount calculated in accordance with the provisions of clause (b) of section 25F of the Industrial Disputes Act, 1947 (14 of 1947); or [(ii) such amount, not being less than fifty thousand rupees, as the Central Government may, by notification 79 in the Official Gazette, specify in this behalf,] whichever is less : Provided further that the preceding proviso shall not apply in respect of any compensation received by a workman in accordance with any scheme which the Central Government may, having rega....
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....n the garb of VRS" due to financial stress. Section 10(10B) imports the definition of "Retrenchment" from Section 2(oo) of the Industrial Disputes Act, 1947 (IDA). Section 2(oo) of IDA explicitly excludes "voluntary retirement": "[(oo) "retrenchment" means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include- (a) voluntary retirement of the workman; or (b) retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or 3[(bb) termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or] (c) termination of the service of a workman on the ground of continued ill-health;]" 13. In BSNL VRS-2019, the separation was triggered by the employee's "Option." In retrenchment, the employer triggers the exit unil....
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.... The compensation received by the assessee was in the nature of compensation under the BSNL VRS-2019 scheme. The compensation amount received under the scheme was offered to tax in the return of income due to lack of awareness regarding the exemption available under section 10(10B) of the Income-tax Act, 1961. The employer had also deducted tax at source on the said amount. No exemption was claimed in the original or revised return of income. The CPC, Bengaluru issued an intimation under section 143(1) for the said year without granting any exemption, and no rectification or appeal was initiated at that time. It was only upon learning about the recent judgment of the Hon'ble ITAT Chandigarh Bench in the case of Harish Kumar vs. ITO Ward 5(5), Chandigarh (ITA No. 42/CHD/2025, dated 30.05.2025) that the assessee became aware that the compensation received under the BSNL VRS-2019 scheme is eligible for exemption under section 10(10B), subject to compliance with Rule 2BA. 4. Aggrieved by the orders of the Assessing Officer, the assessee carried the matter in appeal before the Ld.CIT(A), who dismissed the appeal of the assessee as non maintainable by observing as follows: ....
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....018) 400 ITR 299 (Madras) has held that benefit u/s.10(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 order, assessee(s) are directed to place revised computation of income before the respective Jurisdictional Assessing Officers claiming the exemption u/s.10(10B) of the Act as discussed (supra) and thereafter the Revenue authorities shall grant the refund (if any) entitled to the assessee(s) after due verification of such revised computation of income. Impugned findings of ld.CIT(A) are set asid....
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....Act 142-160 9 29/12/2025 Sunil Ramlingappa Gulave Order under of section 250 Act 161-186 10 29/12/2025 Mary Cruz Janet Francis Order under of section 250 Act 187-212 11 31/12/2025 Rajendra Babulal Takle Order under of section 250 Act 213-227 12 06/01/2026 Devendra Vishwasrao Sonawane Order under of section 250 Act 228-259 13 05/03/2026 Niva Baruah Order under of section 250 Act 260-265 12. Ld. AR has submitted that Department has accepted the decision of Ld. CIT(A)'s in above cases. In these facts, if Revenue has accepted the decisions of CIT(A) in above cases, then it was mandatory for CIT(A) to follow the consistency, in these cases also. 13. In ITA No. 1893 and 1894/PUN/2026, the Ld. CIT(A) has given following findings at page No. 8, para 5.6.1 which is reproduced here as under : "5.6.1 As per discussion the issue regarding the applicability of exemption u/s.10(10B) is not under dispute and the assessee can claim full exemption u/s.10(10B) but in the instant case the appellant failed to report the exemption in income tax return for the year under consideration." Thus, the Ld. CIT(A) h....