Shraddha Pralhad Arote Vs ITO (ITAT Pune)
Material Facts: The assessees were employees of Bharat Sanchar Nigam Limited (BSNL), a Government of India enterprise under the administrative control of the Department of Telecommunications. To revive BSNL and Mahanagar Telephone Nigam Limited (MTNL), the Union Cabinet approved a revival plan on October 23, 2019, communicated via an Office Memorandum dated October 29, 2019. As part of the revival package aimed at reducing workforce costs, BSNL introduced the BSNL Voluntary Retirement Scheme, 2019 for employees aged 50 years and above, paying them ex-gratia compensation.
Procedural History: In their original returns of income, the assessees offered the ex-gratia compensation to tax after claiming an exemption of ₹5,00,000 under Section 10(10C) of the Income-tax Act, 1961, paying due taxes on the remainder.
The initial Intimation orders were passed under Section 143(1)(a) of the Act. The assessees subsequently appealed to the Addl/JCIT(A)-5, Chennai / National Faceless Appeal Centre (NFAC), Delhi, raising a new claim for the first time: that the entire compensation received from BSNL was a non-taxable capital receipt exempt under Section 10(10B) of the Act.
The Ld. CIT(A) dismissed certain appeals due to delays in filing and refused to entertain the new exemption claim in other cases on the ground that it ought to have been made by filing a revised return of income. Aggrieved, the assessees filed consolidated appeals before the ITAT Pune.
