Seshagiri Gadad Vs ITO (ITAT Bangalore)
Bangalore ITAT Allows Full Exemption for BSNL VRS Compensation under Section 10(10B)
The assessee, a retired BSNL employee, received ex gratia compensation of ₹8.60 lakh for AY 2020-21 and ₹18.89 lakh for AY 2021-22 under the BSNL Voluntary Retirement Scheme, 2019. In the returns, he mistakenly claimed exemption of only ₹5 lakh under section 10(10C). Subsequently, he claimed before the CIT(A) that the entire compensation was exempt as retrenchment compensation under section 10(10B). However, the CIT(A) dismissed the appeals on the ground of delay without examining the claim on merits.
The Bangalore ITAT observed that several coordinate benches, including the Bangalore, Chandigarh, Ahmedabad, Pune, Mumbai and Chennai Benches, had consistently held that compensation received under the BSNL VRS, 2019 qualifies for exemption under section 10(10B).
Following these judicial precedents, the Tribunal directed the Assessing Officer to allow exemption under section 10(10B) for the compensation received under the BSNL VRS, subject to verification of the necessary details. Accordingly, both appeals of the assessee were allowed.
List of Cases Discussed / Relied Upon
- Harish Kumar vs ITO Ward 5(5) Chandigarh — ITAT Chandigarh, ITA NO. 42/CHD/2025 dated 30 -05-2025.
- Suman Nandlal Rava; vs ITO WARD 1 Gandhinagar — ITAT Ahmedabad, ITA Nos 2389 & 2393 /Ahd/2025, order dated 18-02-2026.
- Hayeshkumar Tulsidas Sutaria vs ITO WARD 7(2)(1) Ahmadabad — ITAT Ahmedabad, ITA Nos.2387 & 2388/Ahd/2025, dated 17 -02- 2026.
- Shraddha Prahlad Arote and OTHERS vs ITO WARD 2, Ahmednagar — ITAT Pune, Nos 262 and 261/PUN/2026 dated 24 -03-2026.
- Meghmala Sudhir Pathak and OTHERSvs ITO WARD 2(1), Nashik — ITAT Pune, Nos 290 and 293/PUN/2026, dated 24 -03-2026.
- Rajendra Himmatrao Pati and OTHERSvs ITO WARD 1(4) Jalagon — ITAT Pune, Nos 302 and 303/PUN?2026, date of order 27 -03-2026.
- Bajirao Shankar Jagadale vs ITO WARD 42(2)(1), Mumbai — ITAT Mumbai, ITA 1389/Mum/2026, date of order 10 -04-2026.
- Prathibha Jagadish Unawane and OTHERS vs ITO Kolhapur etc. — ITAT Pune, ITA 1117/PUN/2026, date of order 29 -04-2026.
- Sri Sekar Gnanaprakasham v. The Deputy Commissioner of Income TAX — ITAT Chennai, ITA No. 1608&1609/CHNY/2026, order dated 21.05.2026.
- Renuka Narasimha Prabhu & Others v. ITO — ITAT Bangalore SMC Bench, ITA No. 992,1005,1284,1285,1320,1342&1427/BANG/2026, order dated 29.05.2026.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
