SRINIVASA RAO KOLIPAKA Vs. ITO, WARD-13(1), HYDERABAD

Parties Involved

Facts Summary

The assessee, Srinivasa Rao Kolipak, had filed his return of income for the Assessment Year (AY) 2020-21 on 21/11/2020, declaring an income of Rs.17,14,160/-. The return was processed under section 143(1) of the Income Tax Act, 1961, and the income returned by the assessee was accepted. During the subject year, the assessee received an ex-gratia compensation pursuant to the Voluntary Retirement Scheme (VRS) floated by Bharat Sanchar Nigam Limited (BSNL). The assessee included the ex-gratia amount of Rs.9,27,747/- in his total income and offered the same to tax in his return of income. However, the assessee contended that the ex-gratia amount received under the BSNL-VRS Scheme, 2019, partook the character of retrenchment compensation and was eligible for exemption under section 10(10B) of the Act. The assessee had not claimed this exemption in the original return of income. The assessee was aggrieved by the order of the Commissioner of Income Tax (Appeals) and filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Dismissal of the appeal in limine on account of delay without adjudicating the issue on merits.
• 2. Exemption of the Ex-gratia amounting to Rs. 4,27,747/- under section 10(10B) of the Act.
• 3. Admission of the claim of the appellant for exemption of the ex-gratia compensation.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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