2026 (7) TMI 503

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....come-tax Act, 1961 (hereinafter referred to as 'the Act' in short), for Assessment Years 2020-21 & 2021-22. 2. Since the issues involved in both the appeals are identical in nature, they are being disposed of by this consolidated order for the sake of convenience. 3. The assessee has raised multiple grounds of appeal for both the assessment years. Since, except for the variation in the amounts involved, the grounds are identical in substance and wording, the grounds of appeal for AY 2020-21 are reproduced below for the sake of convenience:- ITA No. 789/Ahd/2026 (AY 2020-21) "1. This Appeal before Income Tax Appellate Tribunal is filed to quash and set aside the Order passed u/s 250 by CIT(A) in Appeal No. ADDL/JCIT(A)-2 DE....

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....der of ITAT, Division Bench, SMC, Chandigarh, ITA No.42 CHD 2025, AY 2021-2022, DATED 30-05-2025 and ITAT, SMC Bench, Ahmedabad, ITA Nos. 2387 and 2388 AHD 2025, A.Y. 2020-2021 and A.Y. 2021-2022, DATED 17/02/2026. 5. That Ld.CIT(A) has misdirected himself in law, facts and circumstances of the case, that Ld. CIT(A) has dismissed the Appeal on account of non-applicability of Section 10(10B) to Applicant and the amount received as capital receipt does not fall into non taxable category. 6. That Ld. CIT(A) has misdirected himself in law, facts and circumstances of the case, the Ld. CIT(A) has rejected the Appeal without considering the request of the Assessee who has asked to give him an opportunity to submit Oral Evidences ....

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....etirement. In the return of income filed for the relevant assessment year, the assessee offered the aforesaid receipts to tax and claimed partial exemption. Subsequently, the assessee raised a claim for full exemption under section 10(10B) in respect of VRS compensation and under section 10(10AA) in respect of leave encashment. The CPC, Bengaluru, while processing return under section 143(1) of the Act, did not grant full exemption as claimed subsequently. 5. Aggrieved by the order of the Assessing Officer, the assessee filed appeal before the Ld. CIT(A) who dismissed the appeal holding that exemption u/s 10(10B) is available only in respect of compensation received by a "workman" at the time of retrenchment or under a scheme specificall....

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....he decision of the Ahmedabad Bench of the Tribunal in Jayeshkumar Tulsidas Sutaria vs. ITO in ITA Nos. 2387 & 2388/Ahd/2025 dated 17.02.2026, wherein on identical facts relating to BSNL VRS-2019, the Tribunal has allowed exemption under section 10(10B) and granted consequential relief. 8. The Ld. DR, on the other hand, supported the orders of lower authorities and submitted that the assessee was in managerial cadre and not a "workman", hence not eligible for exemption under section 10(10B) of the Act. 9. We have heard rival submissions and perused material available on record. It is undisputed fact that the assessee received compensation under BSNL VRS-2019 upon voluntary retirement from BSNL. The assessee's case is that the scheme is....