TaxTMI 
TaxTMI 
2026 (8) TMI 824
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....computation arising from non-grant of exemption which falls within appellate jurisdiction and denial of appeal results in absence of remedy and violation of principles of natural justice. 2) Ground 2 The CIT(A) has erred in law and on facts in refusing to condone the delay of 1794 days despite sufficient cause as the delay arose due to bona fide reliance on incorrect Form 16 absence of clear legal position at the time of filing and subsequent judicial developments and the appellant had no occasion to be aggrieved when the return was accepted under Section 143 1 and the conduct cannot be treated as negligence and as per settled law in Katiji N Balakrishnan and other decisions sufficient cause should be interpreted liberally and denial of condonation without considering merits results in grave injustice. 3) Ground 3 The CIT(A) has erred in law in not exercising plenary powers to admit and decide the claim for exemption under Section 10(10B) and failed to appreciate that appellate authorities can entertain fresh claims as held in Pruthvi Brokers Goetze India Ltd and NTPC and in the present case all facts are on record and the issue is purely legal requiring no furthe....
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....he assessee contended that, due to ignorance of law and incorrect professional advice, they could not claim the benefit of exemption under section 10(10B) of the Act, while filing his respective returns of income. Subsequently, upon becoming aware of the judicial precedents rendered in favour of similarly placed BSNL employees holding that the compensation received under the BSNL Voluntary Retirement Scheme - 2019 is eligible for exemption under section 10(10B) of the Act, the assessee sought fresh professional advice and preferred appeals before the respective learned Addl./JCIT(A), wherever applicable along with petitions for condonation of delay, requesting admission of his fresh claim for exemption under section 10(10B) of the Act. 5. Learned Addl./JCIT(A) dismissed the appeals filed by the assessee for the assessment years 2020-2021 and 2021-2022 in limine as there was a delay of 1794 days and 1425 days respectively, in filing the appeals. Thus, the Addl./JCIT(A) has not decided the appeals of the assessee on merits and particularly on the issue of claim of exemption u/sec. 10(10B) of the Act. 6. Before the Tribunal, the learned Authorised Representative of the Assessee ....
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....vi & 3 Others vs. ITO, Ward-9(1), Hyderabad & Others in ITA.Nos.852 and 853/Hyd./ 2026 etc. batch as well as decision of Hon'ble Jurisdictional High Court Sri Vissamsetty Ramakrishna vs. PCIT-4 and two others in WP.No.19498 of 2026 Order dated 15.07.2026. 7. The learned counsel for the assessee, on the issue of taxability of compensation received from BSNL under the VRS-2019 Scheme, submitted that the issue is now settled in favour of the assessee by the decisions of various Tribunals, including the decisions of the ITAT, Ahmedabad, Chennai, Bangalore and Pune, where the Tribunals have taken a consistent view and held that compensation received by the employees of BSNL under the VRS-2019 Scheme is akin to retrenchment compensation as contemplated u/s 10(10B) of the Act and, in view of the 2nd proviso to section 10(10B), the entire amount of compensation is exempt u/s 10(10B) of the Act. The Tribunal further held that, wherever the assessee's had made a fresh claim of exemption by filing appeals before the first appellate authority, the same had been admitted and directed the A.O. to consider the revised statement of total income filed by the assessee's claiming exemption u/s 10(....
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....ur of the assessee by holding that the compensation received by the assessee from BSNL under VRS Scheme-2019 is exempt u/sec. 10(10B) of the Act. We further note that the Tribunals have also considered the condonation of delay ranging from 900 to 2000 days in filing the appeals before the learned CIT(A) and held that when the issue involved is covered in favour of the assessee then, the appeal of the assessee ought to have been decided on merits instead of dismissing on technical ground of limitation. This Tribunal vide Order dated 15.07.2026 in the case of Raghavendra Latha Madhavi & 3 Others vs. ITO, Ward-9(1), Hyderabad & Others (supra), has considered condonation of delay in Para nos.10 and 11 as under: "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's on this issue. Insofar as dismissal of the appeals filed by the assessee's by the learned Addl/JCIT for the delay in filing the appeals, we find that, the very same issue has been considered by the Coordinate Bench of ITAT, ....
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....king a claim under Section 10(10B) of the Act, and while allowing the Writ Petition filed by the assessee, quashed the impugned order and remitted the matter to respondent No.1 with a direction to permit the petitioner to file/submit revised returns of income for claiming exemption u/s 10(10B) of the Act, and thereafter consider the claim on merits. The relevant findings of the Hon'ble High Court are as under: "6. When we look into the averments made in respect of identical claims being allowed by the Benches of Income Tax Appellate Tribunal at Chandigarh, Ahmedabad, Pune, Mumbai, Indore and Bangalore, in identically placed BSNL retirees, this Court is of the considered view that when similar fact was brought to the notice of the respondent-Department, the respondents ought to have appreciated the bona fides of the petitioner and the application filed by the petitioner under Section 119(2)(b) of the Act seeking condonation of delay to file revised ITRs for the Assessment Years 2020-21 and 2021-22, ought to have been considered by the respondent-Department with a more pragmatic and liberal approach, by appreciating the genuine hardship that the petitioner had been put t....
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....d Authorised Representative of the Assessee as well as learned DR on the merits of allowability of exemption u/sec. 10(10B) of the Act. At the outset, we note that this Tribunal vide Order dated 15.07.2026 in the case of Raghavendra Latha Madhavi & 3 Others vs. ITO, Ward-9(1), Hyderabad & Others (supra), has considered an identical issue in Para nos.12 to 15 as under: "12. Having said so, let us come back to the issue on hand. Admittedly, the assessee's in the present bunch of appeals are employees of BSNL and opted for the Voluntary Retirement Scheme - 2019 and received compensation in the relevant financial years. It is also an admitted fact that the assessee's 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's 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's were rejec....
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....ore the Chandigarh Bench of the Tribunal in the case of Harish Kumar vs. ITO, wherein the Tribunal held that the ex-gratia compensation received under BSNL VRS-2019 is eligible for exemption u/s.10(10B) of the Act. Similar view has also been consistently taken by various appellate authorities across the country in the cases relied upon by the assessee. The Revenue has not brought on record any contrary judicial precedent to take a different view in the matter. 13. Considering the facts and circumstances of the case and respectfully following the judicial precedents cited supra, we hold that the ex-gratia compensation received by the assessee under the BSNL VRS-2019 scheme is eligible for exemption u/s.10(10B) of the Act. Consequently, the additions made by taxing the ex-gratia compensation are directed to be deleted. The AO is also directed to grant consequential relief, in accordance with law, in respect of exemption claimed u/s.10(10AA) of the Act, if otherwise found eligible." 15. In this view of the matter and considering the facts and circumstances of the case and also by respectfully following the decisions of the Coordinate Benches of the Tribunals referred....