The Hyderabad ITAT has condoned a 1,404-day delay in filing and declared that BSNL VRS-2019 compensation is eligible for full exemption under Section 10(10B).
Hyderabad ITAT Condones Delay and Exempts BSNL VRS Compensation
The Hyderabad Income Tax Appellate Tribunal (ITAT) has condoned a significant delay of 1,404 days in the filing of a VRS compensation exemption claim by BSNL employees. The ITAT ruled that the compensation paid under the 2019 Voluntary Retirement Scheme is entitled to full exemption under Section 10(10B), contingent upon verification of the employees' status as workmen.
This decision highlights the tribunal's discretion to condone delays when justified and aligns with established legal provisions regarding retrenchment compensation. The ruling underscores the interpretation that such compensation falls under capital receipts exempt from tax under Section 10(10B).
For practitioners, this case sets a precedent regarding the treatment of delayed exemption claims and the categorization of VRS compensation in terms of tax liability.
Citations
- BSNL Ltd. v. Income Tax Officer (2026) ITAT Hyderabad
