ANILKUMAR MATHUR vs INCOME TAX OFFICER WARD 3(3)(5)
The ITAT Ahmedabad bench, in a common order for AYs 2020-21 and 2021-22, allowed the assessee’s appeals partly. The core issue was whether compensation received under BSNL VRS-2019 is exempt under Section 10(10B) of the Income Tax Act, 1961. The assessee had not claimed the exemption in the original return, and the CIT(A) dismissed the appeal as time-barred. The Tribunal, following the Supreme Court’s decision in Collector, Land Acquisition vs. Katiji and CBDT Circular No. 14 of 1955, condoned the delay and held that the CIT(A) should have entertained the claim. On merits, the Tribunal relied on its earlier decisions in Jayeshkumar Tulsidas Sutaria and others to hold that the VRS compensation is exempt under Section 10(10B). Additionally, the Tribunal allowed an additional ground for exemption under Section 10(10AA) for leave encashment, following the Kerala High Court’s decision in Sanchar Nigam Pensioners’ Welfare Association vs. Union of India, subject to verification that the assessee was a DoT employee absorbed in BSNL. The appeals were partly allowed.
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