Sekar Gnanaprakasam Vs DCIT (ITAT Chennai)
WhatsApp Group Became Legal Advisor: Chennai ITAT Condoned 1592-Day Delay & Allowed Full BSNL VRS Exemption u/s 10(10B)
In a significant relief to retired BSNL employees, the Chennai ITAT held that ex-gratia compensation received under the BSNL VRS-2019 scheme qualifies for full exemption u/s 10(10B) as retrenchment compensation and not merely as ordinary VRS compensation. The Tribunal also condoned an extraordinary delay of 1592 days / 1455 days in filing appeals, accepting the assessee’s explanation that he became aware of the legal position only after Tribunal decisions were circulated in employees’ WhatsApp groups.
The assessee, a retrenched BSNL employee and senior citizen, had initially claimed exemption only u/s 10(10C) to the extent of ₹5 lakh and offered the balance VRS compensation to tax. Later, after learning about favourable judicial precedents, he filed delayed appeals claiming that the BSNL VRS-2019 compensation was fully exempt u/s 10(10B). The CIT(A) dismissed the appeals in limine citing delay.
The Tribunal accepted the assessee’s explanation that the delay was neither deliberate nor negligent. It observed that the assessee became aware of the legal remedy only after favourable decisions in BSNL cases were circulated among employees through WhatsApp groups and that substantial justice should prevail over technicalities.
