Jayeshkumar Tulsidas Sutaria Vs ITO (ITAT Ahmedabad)
Summary: The Ahmedabad Bench of the Income Tax Appellate Tribunal disposed of two connected appeals filed by Jayeshkumar Tulsidas Sutaria for Assessment Years 2020-21 and 2021-22. Since the issues in both appeals were common and identical, the Tribunal adjudicated ITA No. 2387/Ahd/2025 for AY 2020-21 and directed that the decision would apply mutatis mutandis to ITA No. 2388/Ahd/2025 for AY 2021-22.
The assessee had been employed with Bharat Sanchar Nigam Limited (BSNL), a Government of India enterprise. BSNL notified the Voluntary Retirement Scheme (VRS) 2019 on 04.11.2019, which was approved and implemented by the employer. The assessee opted for the scheme and received compensation under its terms. According to the assessee, he had not received regular salary for several months before opting for the scheme and was facing financial and professional uncertainty, leading him to opt for the scheme as a measure of financial security.
The compensation received under the BSNL VRS-2019 scheme was offered to tax in the return because, according to the assessee, he was unaware of the exemption available under Section 10(10B) of the Income-tax Act, 1961. Tax had also been deducted at source by the employer. No exemption was claimed either in the original or revised return. The CPC, Bengaluru subsequently issued an intimation under section 143(1) without granting the exemption, and no rectification or appeal was initially initiated.
