Geetha. S Vs ITO (ITAT Chennai)
Chennai ITAT Allows BSNL Employee’s Ex-Gratia Exemption Despite No Revised Return, Citing CBDT Circular Against Taking Advantage of Taxpayer’s Ignorance
The Chennai ITAT held that a BSNL employee was entitled to exemption under sections 10(10B) and 10(10C) in respect of ex-gratia received under the retrenchment scheme, even though the claim had not been made through a revised return. The Tribunal observed that the assessee had initially claimed incorrect exemptions due to ignorance of the applicable provisions, while the legal position had already been settled by the Madras High Court. Relying on CBDT Circular No. 14(XL-35) of 1955, which mandates that tax authorities should not take advantage of an assessee’s ignorance and should assist taxpayers in securing legitimate reliefs, the Tribunal held that both the CPC and the First Appellate Authority failed in their duty by rejecting the claim on the technical ground of absence of a revised return. The Tribunal further reiterated that the powers of the First Appellate Authority are co-terminus with those of the Assessing Officer and that it was fully competent to admit and allow a legitimate claim. Accordingly, it directed the Assessing Officer to grant exemption under section 10(10B) for both assessment years and under section 10(10C) for AY 2020-21, ignoring the absence of a revised return and subject to the prescribed monetary limits.
