Jayshree Kamlesh Mehta Vs ITO (ITAT Ahmedabad)
A Lawful Exemption Cannot Be Lost to a Late Awakening — Four-Year Delay Condoned BSNL VRS Compensation Held Fully Exempt
The Ahmedabad Bench of the ITAT has condoned a delay of nearly four years in appeals filed against intimations u/s 143(1) and held that compensation received under the BSNL Voluntary Retirement Scheme, 2019 was fully exempt u/s 10(10B). The Tribunal observed that the delay arose from the assessee’s bona fide ignorance of the correct legal position and did not involve negligence, mala fides or dilatory tactics.
The assessee, Jayshree Kamlesh Mehta, received compensation under the BSNL VRS-2019 during AYs 2020-21 and 2021-22. Under the mistaken belief that the compensation was taxable, she did not claim exemption u/s 10(10B) in her original returns.
For AY 2020-21, compensation of ₹5,90,725 was received. The return was processed by CPC, Bengaluru u/s 143(1) on 28.08.2021. Subsequently, the Chandigarh Bench of the Tribunal, in Harish Kumar v. ITO, ITA No. 42/Chd/2025, dated 30.05.2025, held that compensation received under BSNL VRS-2019 was eligible for exemption u/s 10(10B).
After becoming aware of this legal position, the assessee filed an appeal before the CIT(A), seeking condonation of delay and claiming the exemption. She explained that the omission arose from a bona fide misunderstanding and lack of proper professional guidance. There was no deliberate intention to delay the proceedings or obtain any unfair advantage.
