Nizamuddin Gooty Vs ITO (ITAT Hyderabad)
The 14 appeals were filed by employees of Bharat Sanchar Nigam Limited (BSNL) who opted for Voluntary Retirement Scheme-2019 and received compensation/ex-gratia in FY 2019-20 and 2020-21. The assessees had originally claimed exemption of Rs.5,00,000/- under Section 10(10C) of the Income-tax Act, 1961 and offered the balance compensation to tax. Their returns were processed under Section 143(1).
The assessees subsequently sought exemption for the entire compensation under Section 10(10B), relying on later Tribunal decisions. Appeals before the Addl/JCIT involved delays ranging from 1,114 to 1,826 days. In some cases, the delay was condoned, while in others the appeals were dismissed in limine. The fresh exemption claim was also rejected on the ground that it had not been made through revised returns, relying on Goetze (India) Ltd. Vs. CIT.
The Tribunal considered the decision of the ITAT Bengaluru in Basappa Balarama and Murthy Rangappa Vs. ITO, Ward 1, Karnataka, where delays in identical BSNL employee cases had been condoned. It noted that delays ranging from 900 to 2,000 days had been condoned in similar cases and that the Addl/JCIT had also condoned delays in several cases. Following that decision, the Tribunal condoned the delays ranging from 1,114 to 1,826 days in the present appeals.
