TaxTMI 
TaxTMI 
2026 (7) TMI 608
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Income Tax Act, 1961 (hereinafter referred to as the "Act") and relates to Assessment Year (A.Y.) 2020-21 & 2021-22. 2. The assessee in ITA No.1305/Ahd/2026 for A.Y.2020-21 has taken following grounds: "1. 1. The Lrd. CIT(A) has erred in law and on facts in not granting full exemption in respect of leave encashment received by the Appellant on retirement by restricting the claim under section 10(10AA) of the Income-tax Act, 1961. The Lrd. CIT(A)) failed to appreciate that the enhanced monetary limit of Rs. 25,00,000 as per CBDT Notification No. 31/2023 dated 24.05.2023, being beneficial in nature, is applicable and ought to have been granted. 2. The Lrd. CIT(A) has erred in law and on facts in denying exemption und....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r section 10(10B). The issue now stands consistently decided in favour of the assessee by coordinate benches of the Hon'ble ITAT in Jayeshkumar Tulsidas Sutaria v. ITO, Suman Nandlal Raval v. ITO and Harish Kumar v. ITO, wherein BSNL VRS-2019 compensation has been held eligible for exemption under section 10(10B). The impugned order, being contrary to consistent judicial precedent, deserves to be reversed." 3. The assessee in ITA No.1306/Ahd/2026 for A.Y.2021-22 has raised following grounds: "1. The Lrd. CIT(A)) has erred in law and on facts in denying exemption under section 10(10B) of the Income-tax Act, 1961 in respect of ex-gratia compensation received under BSNL VRS-2019 scheme. The Lrd. CIT(A)), while acknowledging and not....
X X X X Extracts X X X X
X X X X Extracts X X X X
....O, Suman Nandlal Raval v. ITO and Harish Kumar v. ITO, wherein BSNL VRS-2019 compensation has been held eligible for exemption under section 10(10B). The impugned order, being contrary to consistent judicial precedent, deserves to be reversed." 4. 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 the scheme has been disclosed in the return of income, and due tax has been paid, despite the fact that the same was exempt from tax. It is further submitted that the VRS was meant for the retrenchment of senior/old-age employees who were unable to adapt to new technology.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 the case Jayeshkumar Tulsidas Sutaria dated 17.02.2026 3. ITA No.2389 & 2390/Ahd/2014 in the case of Suman Nandlal Raval dated 18.02.2026 8. We note t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n 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. The appellant having omitted to claim relief in the return of income can claim the relief by filing the revised return. In cases where the time limit for fil....