Sudhakar Ramchandra Patil & Ors. vs. ITO

Parties Involved

Facts Summary

The assessees were employees of Bharat Sanchar Nigam Limited (BSNL) and received compensation under the BSNL Voluntary Retirement Scheme, 2019. The assessees claimed that the compensation was a capital receipt exempt from tax under section 10(10B) of the Income Tax Act, 1961. The Assessing Officer and the Commissioner of Income Tax (Appeals) held that the compensation was taxable under section 10(10C) of the Act. The assessees appealed to the Income Tax Appellate Tribunal (ITAT), which allowed the appeals and held that the compensation was exempt from tax under section 10(10B) of the Act.…

Legal Issues

• 1. Whether the amount received from BSNL on account of the retirement through the BSNL Voluntary Retirement Scheme, 2019 is in the nature of Retrenchment Compensation and is a Capital receipt not liable to be taxed as per the provisions of section 10(10B) of the Act.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

Similar Judgements

• ITA Nos.3078/PUN/2026 & Ors.

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