2026 (7) TMI 292

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....and relates to Assessment Year (A.Y.) 2021-22. 2. The assessee has taken following grounds in this appeal: "1. The order passed by lower authorities is bad in law and required to be quashed. 2. Ld. JCIT (A) ought to have treated retrenchment compensation received as tax exempt u/s 10(10B) of the Act. 3. Appellant prays that it is duty of AO to tax correct income and accordingly, AO ought to have granted deduction u/s 10(10B) of the Act as appellant is fully eligible for the same." 3. The assessee was a salaried employee working with BSNL. The Government introduced a Voluntary Retirement Scheme (VRS), which the assessee opted for and was duly accepted by BSNL. It is submitted that the amount received under th....

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....he Ld.CIT(A), the assessee is in further appeal before us. 6. The Ld. Counsel for the assessee submitted that the amount received by the assessee represented retrenchment compensation received from the Central Government under a scheme approved by the Government. It was submitted that the said amount is fully exempt from tax under section 10(10B) of the Income-tax Act, 1961, and, therefore, the assessee is entitled to full tax exemption. The Ld. Counsel for the assessee further relied upon the following decisions of Coordinate Benches of the ITAT in support of the claim of exemption. "1. ITA No. 42/Chd/2025 AY 2021-22 in the case of Harish Kumar V/s. ITO Chandigarh dated 30.05.2025. 2. ITA Nos.2387 & 2388/Ahd/2025 in th....

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....eal was initiated at that time. The issue on this appeal pertains to exemption u/s 10(10B) of the Income Tax Act The appellant in his written submission has stated that it was only upon learning about the recent judgment of the Hon'ble ITAT Chandigarh, in the case of Harish Kumar vs. ITO Ward 5(5), Chandigarh (ITA No. 42/CHD/2025, dated 30.05.2025), that the Appellant came to know that the compensation received under the BSNL VRS 2019 scheme is eligible for full exemption u/s. 10(10B), subject to Rule 2BA compliance. The grievance raised in the grounds of appeal does not emanate from the order appealed against. It is not a case where the appellant claimed exemption u/s.10(10B) and it was denied by the Assessing Officer....