ITA Nos.288 and 289/NAG/2026
Parties Involved
Facts Summary
The assessee, Lakshminarayana Peravali, is an employee of Bharat Sanchar Nigam Limited (BSNL). BSNL, under the administrative control of the Department of Telecommunications, Government of India, approved a revival plan on 23.10.2019. As part of this revival package, BSNL implemented the Voluntary Retirement Scheme (VRS) 2019 to reduce the workforce. Employees aged 50 years and above were offered ex-gratia compensation upon retirement. The assessee received compensation under this scheme and claimed exemption under section 10(10B) of the Income Tax Act, 1961. The Commissioner of Income Tax (Appeal) dismissed the appeal on grounds of delay and failure to make the claim in the revised return of income. The assessee appealed to the Income Tax Appellate Tribunal (ITAT).…
Decision in favour of
Partly Assessee / Partly Revenue
Legal Issues
- 1. Whether the amount received by the employees of BSNL on account of retirement under the BSNL Voluntary Retirement Scheme, 2019 is in the nature of retrenchment compensation and a Capital Receipt, eligible for exemption u/s.10(10B) of the Act.
Judgment Outcome
Decided in favour of Partly Assessee / Partly Revenue.
Precedents Relied Upon
20 precedents cited in this judgement.