TaxTMI 
TaxTMI 
2026 (6) TMI 1381
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....JAYAKUMAR, against the order of ld. CIT(Appeals) dated 16-Jan-2026 for the Assessment Year 2020-21 wherein the full exemption of Rs. 10,82,505 u/s. 10(10B) of the Income Tax Act, 1961 [the Act] was not allowed to the assessee in respect of retrenchment compensation received as per the BSNL VRS Scheme, 2019, but restricted to exemption of only Rs. 5 lakhs. 2. The Assessee is concerned about grant of full exemption of Rs. 10,82,505 being compensation received from BSNL. 3. Briefly stated the facts show that the appellant was earlier employed with Department of Telecommunication [DOT] and thereafter with BSNL, was out of service because of the BSNL VRS Scheme, 2019. The assessee received Rs. 10,82,505 as part of the c....
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....6 in the case of Shraddha Pralhad Arote & Ors. v. ITO. He submits that para 16 of that decision wherein specifically the argument of the ld. DR with respect to whether the assessee is a workman or not, has been considered and rejected. Thus, the issue squarely covers in favour of the assessee. 6. The ld. DR, Shri Ganesh R Ghale, vehemently supported the order of the ld. lower authorities. 7. We have carefully considered the rival contentions and perused the orders of the ld. lower authorities as well as various judicial precedents cited before us. The assessee is a retired employee who initially served with the DOT and subsequently with BSNL. During the year 2020-21 the assessee was retrenched from the services in terms of BSNL VRS Sc....
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.... thereafter transferred to BSNL and retrenched from services in view of the BSNL VRS Scheme, 2019, got ex gratia compensation of Rs. 13,49,010. She initially claimed exemption of only Rs. 5 lakhs while filing return of income and subsequently claimed full exemption. The ld. CIT (A) noted that the order u/s. 143(1) of the Act was passed on 28.8.2021 and appeal is filed on 23.12.2025, thus there is a delay of 1048 days which was not explained by the assessee showing sufficient cause and hence the appeal of the assessee was dismissed as unadmitted. 10. Against this, the assessee is in appeal before us. The only claim of the assessee is that assessee should be allowed full exemption of Rs. 13,49,010 u/s. 10(10B) of the Act and....
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.... the assessee u/s. 10(10B) of the Act in respect of compensation received on retrenchment of Rs. 13,49,010 received from BSNL VRS Scheme, 2019, for reasons given by me in ITA No. 1005/BANG/2026 in the case of Mr. Jayakumar, I direct the ld. AO to grant the assessee complete exemption of Rs. 13,49,010. 14. With respect to the claim of the assessee in respect of accumulated leave encashment of Rs. 11,13,585 which is accepted by the revenue authorities only upto Rs. 3 lakhs, assessee has relied upon several decisions. 15. However, with respect to condonation of delay, the ld. AR submitted that the ld. CIT (A) should have condoned the delay as in the case of 72 cases before the Coordinate Benches across the countr....
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.... purposes of monetary limit and number of days. It is not on the issue of whether the employees of BSNL can be considered as central Government employees when they have come from department of telecommunication. 18. Therefore, respectfully following the decision of the Coordinate Bench, we hold that assessee should also be granted the benefit of exemption of Rs. 11,13,585 in respect of accumulated leave encashment u/s. 10(10AA) of the Act. 19. Accordingly the ld. AO is directed to grant exemption of Rs. 13,49,010 u/s. 10(10) in respect of compensation received on retrenchment and further of Rs. 11,13,585 in respect of accumulated leave encashment received by the assessee. Thus, the appeal of the assessee is allowed. ....
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....t of Rs. 4,37,900. Accordingly, this appeal is allowed. 22. ITA No. 1320/BANG/2026_for AY 2020-21 is filed by RAMU MADHU KANTHANAYAKA (the assessee) claiming exemption of compensation received on retrenchment of Rs. 11,49,073 and exemption of accumulated leave encashment of Rs. 4,66,093. 23. Both these issues are covered by my decision in the case of ITA No. 992/BANG/2026 in the case of Renuka Narasimha Prabhu for AY 2020-21, therefore for the reasons given therein, I direct the ld. AO to allow exemption of retrenchment compensation of Rs. 11,49,073 and exemption of accumulated leave encashment of Rs. 4,69,093 in the case of this assessee also. The appeal of the assessee is allowed. 24. ITA No.&nb....