Suman Nandlal Raval Vs ITO (ITAT Ahmedabad)
The assessee filed appeals for AYs 2020-21 and 2021-22 challenging the orders of the CIT(A)/NFAC, which had dismissed the appeals as not maintainable on account of a delay of 1,396 days in filing. The assessee, a former employee of Bharat Sanchar Nigam Limited (BSNL), had opted for the BSNL Voluntary Retirement Scheme (VRS) 2019 and received compensation under the scheme. Owing to lack of awareness of the exemption available under Section 10(10B) of the Income-tax Act, 1961, the assessee offered the compensation to tax in the return of income, no exemption was claimed in the original or revised return, and tax was deducted at source by the employer. After becoming aware of a subsequent ITAT Chandigarh decision holding compensation received under the same BSNL VRS-2019 scheme to be eligible for exemption under Section 10(10B), the assessee sought the benefit of the exemption.
The CIT(A) refused to condone the delay, holding that the delay of almost four years was inordinate and that the assessee had failed to establish sufficient cause under Section 249(3) of the Income-tax Act. Consequently, the appeal was treated as not maintainable and the merits of the exemption claim were not examined.
