TaxTMI 
TaxTMI 
2026 (8) TMI 785
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....ted facts of the present appeals filed by different assessee are that they are employed with Bharat Sanchar Nigam Limited ("BSNL"), a Public Sector Undertaking under the administrative control of the Department of Telecommunications, Government of India. Pursuant to the decision of the Union Cabinet for revival of BSNL by reducing employee cost, administrative allotment of spectrum for 4G services, etc., BSNL introduced the Voluntary Retirement Scheme - 2019 for its employees aged 50 years and above, on payment of retirement ex gratia. The assessee in the present appeals opted for the Voluntary Retirement Scheme - 2019 and received compensation/ex-gratia, as quantified by BSNL and paid in the relevant financial years. The BSNL paid the compensation after deducting applicable TDS as per law. The amount so received by the assessee was offered to tax in the respective returns of income filed for the relevant assessment years. The returns of income filed by the assessee were processed u/s 143(1) of the Act, accepting the returned income without any tax demand. 3. The assessee in the present appeals filed appeals before the respective learned Addl./JCIT(A), inter alia, making a fresh....
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....d the appeals filed by the assessee either on the ground of delay in filing the appeals or on the ground that the fresh claim made by the assessee was not maintainable at the appellate stage. However, the delay in filing the appeals before the learned Addl./JCIT(A) has been explained by filing petitions for condonation of delay and, as per the assessees, they had filed the appeals belatedly on account of subsequent legal precedents, which are in favour of the assessee on the issue of taxability of compensation received from BSNL under VRS-2019 Scheme and due to incorrect professional advice or ignorance of law, they could not file the appeals within the due date. This fact has been rightly appreciated by various Benches of the Tribunal, including the decision of the ITAT, Bangalore Bench in the case of Basappa Balarama and Murthy Rangappa Vs. ITO, Ward-1, Karnataka in ITA Nos.1342 and 1427/Bang/2026, dated 29.05.2026, wherein, in paragraphs 14 and 15, the Tribunal discussed the issue of delay and condoned the delay in filing the appeals ranging from 900 to 2000 days, depending upon the explanation of the assessee and by considering the fact that the learned Addl./JCIT(A) himself ha....
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....herefore, re characterization of the VRS compensation received by the assessee as retrenchment compensation and allowing exemption @ 100% under section 10(10B) of the Act is incorrect. The learned Senior A.R. further submitted that the assessee themselves had filed their respective returns of income and offered the compensation received from BSNL to tax in accordance with the returns filed by them. Further, the employer, i.e., BSNL, had also deducted TDS on such compensation as applicable under the relevant provisions of the Act. From the above, it is very clear that the compensation received by the assessee from BSNL is compensation under a Voluntary Retirement Scheme falling under section 10(10C) of the Act and not under section 10(10B) of the Act and, therefore, the subsequent claim made by the assessee cannot be accepted. Therefore, he submitted that the appeals filed by the assessee should be dismissed. 10. We have heard both parties, perused the material available on record and had gone through the orders of the authorities below. We have also carefully considered a plethora of judicial precedents referred to by learned counsel for the assessee on this issue. Insofar as di....
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....t the assessee in the present cases had filed their respective returns of income and offered the compensation received from BSNL to tax and the same has been accepted by the A.O. in the intimation issued u/s 143(1) of the Act. However, the assessee in the present cases have made a fresh claim of exemption towards 100% compensation received from BSNL under the Voluntary Retirement Scheme - 2019 u/s 10(10B) of the Act, for the first time before the respective learned Addl./JCIT(A) and the claims made by the assessee were rejected on technical grounds. In other words, in all these cases, the claims made by the assessee have been rejected without examining the merits of the claims in light of the provisions of section 10(10B) of the Income-tax Act, 1961. 13. The learned counsel for the assessee has cited a plethora of judicial precedents, including the decisions of various Benches of the Tribunals and we find that, in a number of cases, the Coordinate Benches of the Tribunal across the country have taken a consistent view and held that compensation received by the employees of BSNL under the Voluntary Retirement Scheme - 2019 is exempt u/s 10(10B) of the Act and further directed the....