Madhukantaben Krushnakant Dave & Dipesh Jayantilal Parikh vs. ITO

Parties Involved

Facts Summary

The assessees, Madhukanta Krushnakant Dave and Dipesh Jayantilal Parikh, have filed appeals against the orders of the Commissioner of Income Tax (Appeals) regarding the assessment years 2020-21 and 2021-22. The assessees were employees of BSNL who opted for the Voluntary Retirement Scheme (VRS) and received compensation. They did not claim tax exemption for the compensation in their original returns due to lack of awareness. Upon learning about a recent judgment by the ITAT Chandigarh Bench, they sought exemption under section 10(10B) of the Income Tax Act, 1961. The assessees argued that the entire compensation amount should be exempt from tax. The Ld. Commissioner of Income Tax (Appeals) dismissed the appeals, leading to the current appeals before the ITAT.…

Legal Issues

• 1. Whether the compensation received under the BSNL VRS is exempt from tax under section 10(10B) of the Income Tax Act, 1961?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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