TaxTMI 
TaxTMI 
2026 (7) TMI 2015
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.... were heard together and are being disposed off by this single consolidated order for the sake of convenience and brevity. 2. Briefly stated 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. In pursuant to the decision of the Union Cabinet for revival of BSNL by reducing employee cost, administrative allotment of spectrum for 4G services, etc., the BSNL has introduced Voluntary Retirement Scheme - 2019, for its employees aged 50 years and above, on payment of retirement ex gratia. The assessee in the present appeals have opted for Voluntary Retirement Scheme - 2019 and received compensation/ ex-gratia, as quantified by the BSNL and paid in two financial years, i.e., F.Y. 2019-20 and F.Y. 2020-21. The BSNL has paid compensation after deducting applicable TDS as per law. The amount so received by each of the assessee is stated to have been offered to tax for the A.Y. 2020-21 and 2021-22 after claiming exemption of Rs.5,00,000/- u/s 10(10C) of the Income-tax Act, 1961, and paid the due....
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....rieved by the order of the learned Addl/JCIT, the assessee are now in appeals before the Tribunal. 6. The learned counsel for the assessee, Shri M. Achyuth, C.A. and Shri A. Rajesh, C.A., referring to the appeals filed by the assessee and the consequent orders passed by the learned Addl/JCIT, submitted that the learned Addl/JCIT dismissed the appeals filed by a few assessee in 'limine' for the delay in filing the appeals. Further, in a few cases, the learned Addl/JCIT condoned the delay after considering the explanation furnished by the assessee. However, the learned Addl/JCIT dismissed the appeals on merits by rejecting the fresh claim of exemption u/s 10(10B) of the Act, because the assessee have made a fresh claim before the learned Addl/JCIT without filing revised returns of income. However, the delay in filing the appeals before the learned Addl/JCIT has been explained by filing petitions for condonation of delay and, as per the assessee, 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 advic....
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....ssee do not come under 'sufficient cause' for condonation of delay, and, therefore, the delay in filing the appeals before the learned Addl/JCIT should not be condoned. 9. The learned Senior A.R. for the Revenue further submitted that compensation received by the present assessee from BSNL under VRS-2019 Scheme, is not retrenchment compensation for claiming exemption u/s 10(10B) of the Act, because, as per the Scheme introduced by BSNL itself, it is very clear that, it is a Voluntary Retirement Scheme and the assessee could either accept or decline the same and there was no compulsion on the assessee to go in for VRS under any circumstances. Therefore, recharacterization of VRS compensation received by the assessee as retrenchment compensation and allowing exemption @ 100% as per section 10(10B) of the Act, is incorrect. The learned Senior A.R. further submitted that, the assessee themselves have filed returns of income for A.Ys. 2019-20 and 2020-21 and claimed exemption of Rs.5,00,000/- u/s 10(10C) of the Act, and offered the balance amount of compensation to tax and paid the applicable taxes thereon. Further, the employer, i.e., BSNL had also deducted TDS on such compensation ....
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....been considered by various Benches of the Tribunal after examining the reasons given by them in the petitions filed for explaining the delay, in our considered view, by respectfully following the decision of the ITAT, Bengaluru Bench in the case of Basappa Balarama and Murthy Rangappa (supra), the delay in filing the present appeals before the learned Addl/JCIT ranging from 1,114 days to 1,826 days deserves to be condoned. Thus, we condone the delay in filing the appeals before the learned Addl/JCIT in all these cases. 12. Having said so, let us come back to the issue on hand. Admittedly, the assessee in the present bunch of appeals are employees of BSNL and opted for the Voluntary Retirement Scheme - 2019 and received compensation in two financial years relevant to the A.Ys. 2020-21 and 2021-22. It is also an admitted fact that the assessee in the present cases had filed their returns of income for A.Y. 2020-21 and offered the compensation received from BSNL to tax after claiming exemption of Rs.5,00,000/- u/s 10(10C) of the Act and the same has been accepted by the A.O. in the order passed u/s 143(1) of the Act. However, the assessee in the present cases have made a fresh clai....