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

Parties Involved

Facts Summary

The assessee, Venkata Subrahmanya Rama Krishna Sastry Vissavajhala, filed his return of income for the Assessment Year (AY) 2020-21 on 26/10/2020, declaring an income of Rs.23,17,720/-. The return was processed under section 143(1) of the Income Tax Act, 1961, dated 28/08/2021. 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.1,75,373/- in his total income and offered the same to tax in his return of income. However, the assessee later contended that the ex-gratia 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 fully claimed this exemption in the original return of income. The assessee appealed against the intimation issued by the CPC, Bengaluru under section 143(1) of the Act, dated 28/08/2021, before the CIT(A). However, the CIT(A) dismissed the appeal in limine due to delay. The assessee then appealed to the ITAT, Hyderabad.…

Legal Issues

• 1. Whether the Hon'ble CIT(A) erred in dismissing the appeal in limine on account of delay without adjudicating the issue on merits.
• 2. Whether the Hon'ble CIT(A) erred in not allowing the exemption of the Ex-gratia amounting to Rs.1,75,373/- for which the appellant is eligible under section 10(108) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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