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

Parties Involved

Facts Summary

The assessees, employees of Bharat Sanchar Nigam Limited (BSNL), opted for the Voluntary Retirement Scheme, 2019 (VRS-2019) and received ex-gratia compensation from BSNL. BSNL deducted tax at source on the compensation. The assessees filed their income tax returns claiming exemption of ₹5,00,000/- under section 10(10C) of the Income-tax Act, 1961, and offered the excess amount to tax. They later discovered that the compensation was fully exempt under section 10(10B) of the Act and appealed against the intimations issued under section 143(1) of the Act. The appeals were dismissed for delay. The assessees appealed to the Income Tax Appellate Tribunal (ITAT) seeking condonation of delay and exemption under section 10(10B).…

Legal Issues

• 1. Whether the delay in filing the appeals should be condoned?
• 2. Whether the compensation received under VRS-2019 is eligible for exemption under section 10(10B)?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• ITA No.3261/PUN/2026 and others

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• Sudhakar Ramchandra Patil & Ors. vs. ITO

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• ITA Nos.288 and 289/NAG/2026

  Nagpur bench

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

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• Venkata Subrahmanya Rama Krishna Sastry Vissavajhala vs. ITO, Ward-13(3)

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• Jayshree Kamlesh Mehta vs. ITO

  Ahmedabad bench