Chamblon Reeta and others vs. ITO

Parties Involved

Facts Summary

The assessees, who are former employees of Bharat Sanchar Nigam Limited (BSNL), opted for voluntary retirement under the BSNL Voluntary Retirement Scheme 2019 (VRS 2019) and received ex-gratia compensation. They also received leave encashment during their employment. The assessees filed appeals against the orders of the Commissioner of Income Tax-Appeal, claiming exemption under sections 10(10B) and 10(10AA) of the Income Tax Act for the compensation and leave encashment. The assessees argued that they were unaware of the correct legal position at the time of filing their returns and sought exemption based on subsequent decisions of the Tribunal.…

Legal Issues

• 1. Allowability of exemption under section 10(10B) of the Act for ex-gratia compensation received under BSNL VRS-2019.
• 2. Exemption of leave encashment under section 10(10AA) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Shri Gudla Rao, Shri Jagannath Rao Chelikani, and Shri Bhargava Prasad Gadi v. Income Tax Officer

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• Jayesh Charanbhai Rana vs Income Tax Officer Ward 7(2)(1), Ahmedabad

  Ahmedabad bench

• ITA Nos.288 and 289/NAG/2026

  Nagpur bench

• Kanaka Raju Uppalapati vs. ITO, Ward-13(1)

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• Jayshree Kamlesh Mehta vs. ITO

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• ITA No.3261/PUN/2026 and others

  Pune bench