Income Tax Appellate Tribunal - Pune
Pratima Ravindra Acharya,Mumbai vs Ito Wd-2(1), Nashik on 27 March, 2026
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "SMC" : PUNE
BEFORE DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER
AND
SHRI VINAY BHAMORE, JUDICIAL MEMBER
आयकर अपील सं. / ITA Nos.302 and 303/PUN/2026
Assessment Years : 2021-22 and 2020-21
Rajendra Himmatrao Patil, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1(4), Jalgaon.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : AAQPP9245G
Appellant Respondent
आयकर अपील सं. / ITA Nos.325 and 326/PUN/2026
Assessment Years : 2020-21 and 2021-22
Chandrakant Parshuram Vs. Income Tax Officer,
Shirole, Ward 2(1), Nashik.
C/o. Padvekar Law Chambers,
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : ATEPS6565M
Appellant Respondent
आयकर अपील सं. / ITA Nos.327 and 328/PUN/2026
Assessment Years : 2020-21 and 2021-22
Namdeo Kashinath Kasar, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 2(1), Nashik.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : AMYPK6105E
Appellant Respondent
Rajendra Himmatrao Patil & Others
आयकर अपील सं. / ITA Nos.331 and 332/PUN/2026
Assessment Years : 2020-21 and 2021-22
Lalitkumar Pandharinath Vs. Income Tax Officer,
Joshi, Ward 2(1), Nashik.
C/o. Padvekar Law Chambers,
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : ABXPJ7779H
Appellant Respondent
आयकर अपील सं. / ITA Nos.304 and 305/PUN/2026
Assessment Years : 2021-22 and 2020-21
Sunita Dnyaneshwar Khamkar, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1(1), Kolhapur.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : ABDPK333N
Appellant Respondent
आयकर अपील सं. / ITA Nos.306 and 307/PUN/2026
Assessment Years : 2020-21 and 2021-22
Dhanajay Bhagwanrao Vs. Income Tax Officer,
Degaonkar, Ward 1, Nanded.
C/o. Padvekar Law Chambers,
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : ABEPD8418N
Appellant Respondent
आयकर अपील सं. / ITA Nos.309 and 329/PUN/2026
Assessment Years : 2021-22 and 2020-21
Rohidas Dajbhau Bhamare, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1, Dhule.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : ACQPB4093A
Appellant Respondent
2
Rajendra Himmatrao Patil & Others
आयकर अपील सं. / ITA Nos.310 and 321/PUN/2026
Assessment Years : 2021-22 and 2020-21
Vishakha Avinash Joshi, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1(1), Kolhapur.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : AAPPJ4034J
Appellant Respondent
आयकर अपील सं. / ITA Nos.324 and 340/PUN/2026
Assessment Years : 2021-22 and 2020-21
Arvind Pandurang Kajawe, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 2(1), Nashik.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : ABCPK1993K
Appellant Respondent
आयकर अपील सं. / ITA Nos.338 and 339/PUN/2026
Assessment Years : 2020-21 and 2021-22
Sunita Namdeo Wagh, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 2(1), Nashik.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : AAHPW8315M
Appellant Respondent
आयकर अपील सं. / ITA Nos.852 and 853/PUN/2026
Assessment Years : 2020-21 and 2021-22
Karveer Gangaji Narewadi, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1(1), Kolhapur.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : AAHPN8584F
Appellant Respondent
3
Rajendra Himmatrao Patil & Others
आयकर अपील सं. / ITA Nos.854 and 855/PUN/2026
Assessment Years : 2020-21 and 2021-22
Vidya Charudatta Lingayat, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1, Malegaon.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : AASPL6032H
Appellant Respondent
आयकर अपील सं. / ITA Nos.856 and 857/PUN/2026
Assessment Years : 2020-21 and 2021-22
Rohini Sanjay Naik, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1(5), Aurangabad.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : ADBPN1341D
Appellant Respondent
आयकर अपील सं. / ITA Nos.858 and 859/PUN/2026
Assessment Years : 2020-21 and 2021-22
Pratima Ravindra Acharya, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 2(1), Nashik.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : ACRPA3047L
Appellant Respondent
आयकर अपील सं. / ITA Nos.860 and 861/PUN/2026
Assessment Years : 2020-21 and 2021-22
Rajendra Pandit Thakuar, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1(4), Jalgaon.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : AANPT2285R
Appellant Respondent
4
Rajendra Himmatrao Patil & Others
आयकर अपील सं. / ITA Nos.862 and 863/PUN/2026
Assessment Years : 2020-21 and 2021-22
Ramchandra Trimbakrao Kale, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1(5), Aurangabad.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : ACQPK7829R
Appellant Respondent
आयकर अपील सं. / ITA Nos.866 and 867/PUN/2026
Assessment Years : 2020-21 and 2021-22
Sneha Uday Sawant, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1(2), Nashik.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : AKUPS7375Q
Appellant Respondent
आयकर अपील सं. / ITA Nos.868 and 869/PUN/2026
Assessment Years : 2020-21 and 2021-22
Pitambar Laxman Shimpi, Vs. Income Tax Officer,
C/o. Padvekar Law Chambers, Ward 1(4), Jalgaon.
408, Maker Bhavan No.3,
21, New Marine Lines,
Mumbai - 400 020
Maharashtra
PAN : AHNPS9905L
Appellant Respondent
5
Rajendra Himmatrao Patil & Others
Assessee by : Shri Tanzil Padvekar (Virtual)
Revenue by : Sailee Dhole - JCIT (Virtual)
Date of hearing : 24/03/2026, 25/03/2026 &
26.03.2026
Date of pronouncement : 27/03/2026
आदेश/ ORDER
PER BENCH :
The captioned appeals at the instance of respective assessee(s) pertaining to A.Yrs. 2020-21 and 2021-22 are directed against the separate orders framed by Addl/JCIT(A)-, passed u/s 250 of the Income Tax Act 1961 arising out of respective Intimation orders passed u/s.143(1) of the Act.
2. We have heard both the parties and perused the records. Since common issues have been raised in the above appeals we proceed to adjudicate these appeals by way of this consolidated order for the sake of convenience.
3. The common issue raised in these bunch of appeals is that whether the amount received from Bharat Sanchar Nigam Limited (BSNL) on account of the forced retirement through the BNSL Voluntary Retirement Scheme, 2019 is in the nature of Retrenchment Compensation and is a Capital receipt not liable to be taxed as per the provisions of section 10(10B) of the Act.
4. Brief facts relating to all the assessee(s) in the instant appeals are that they are employed with BSNL which is under administrative control of Department of Telecommunications, Govt. of India. In order to revive BSNL, the Union Cabinet in its meeting dated 23.10.2019 approved the revival plan of BSNL and Mahanagar Telephone Nigam Limited, Mumbai (MTNL) vide 6 Rajendra Himmatrao Patil & Others Office Memorandum dated 29.10.2019 issued by Department of Telecommunications. As part of the revival package the Government decided to reduce the work force through BSNL Voluntary Retirement Scheme, 2019 to the employees of aged 50 years and above and on such retirement Ex-gratia compensation has been paid. The amount so received by the instant employees is stated to have been offered to tax after claiming exemption u/s.10(10C) of the Act Rs.5.00 lakh and have paid the due taxes on the remaining amount of compensation over and above Rs.5.00 lakhs (in cases where such compensation exceeds Rs.5.00 lakhs). Admittedly, in this bunch of appeals the claim that the entire amount of compensation received from BSNL being Capital receipt is not liable to tax as per the provisions of section 10(10B) of the Act has been made for the first time before Ld.Commissioner of Income Tax (appeal). It is also noticed that in some cases ld.CIT(A) dismissed the appeals on account of delay in filing of the appeals and in some cases ld.CIT(A) has not entertained the new claim made for the first time holding that the same should have been made in the revised return of income. Aggrieved with the finding of ld.CIT(A), the assessee(s) are in appeal before this Tribunal.
5. Ld. Counsel for the assessee at the outset justifying the delay in filing of appeals before ld.CIT(A) submitted that the issue of claiming benefit of exemption u/s.10(10B) of the Act for the amount received as compensation from BSNL for the force retirement has been adjudicated by the Coordinate Benches of Chandigarh as well as Ahmedabad and other Tribunals consistently holding in favour of the assessee(s). He also submitted that in various cases dealt by the Coordinates 7 Rajendra Himmatrao Patil & Others Benches, the alleged claim of exemption u/s.10(10B) of the Act has been made for the first time and the same has been admitted by the Tribunal and relief has been granted. Reliance placed on the decision of Coordinate Bench, Ahmedabad in the case of Jayesh Kumar Tulsidas Sutaria Vs. ITO (2026) 183 taxmann.com 587 (Ahmedabad-Trib.)
6. So far as the claim that the alleged sum received in the form of Retrenchment Compensation from BSNL under the forced retirement is a Capital receipt not chargeable to tax and exemption available u/s.10(10B) of the Act has been decided in favour of the assessee(s), ld. Counsel for the assessee placed reliance in the following decisions :
1. Harish Kumar Vs. ITO (2025) 175 taxmann.com 379 (Chandigarh-Trib.)
2. Dayal Singh Vs. ITO - ITA 519/cHD/2024
3. Suresh Pal Chauhan vs. ITO (2023) 154 taxmann.com 529 (Chandigarh-Trib.)
4. Hindustan Photo Film Workers Welfare Centre Vs. Govt. of India (2017) 79 taxmann.com 298 (Madras)
5. CIT (TDS) Vs. Hindustan Photo Film Workers Welfare Centre (2021 129 taxmann.com 356 (Madras)
6. Union of India Vs. M/s. Hindustan Photo Film Workers Welfare Centre and others _ Special Leave Petition (Civil) Diary No.37247/2017
7. Shree Rajeshwar Sharma Vs. ITO - ITA No.870/CHD/2018
8. CIT Vs. Mahalakshmi Textile Mills Ltd.(1967) 66 ITR 710 (SC)
9. PCIT Vs. Karnataka State Cooperative Federation Ltd. (2021) 128 taxmann.com 1 (Karnataka)
10. CIT Vs. Pruthvi Brokers & Shareholders (2012) 23 taxmann.com 23 (Bombay)
7. On the other hand, ld. DR supported the orders of ld.CIT(A) and submitted that firstly the assess(s) have not made this claim in the regular returns of income and themselves paid due taxes and such claim ought to have been made through revised return. He also submitted that the sum received from BSNL is on account of Voluntary Retirement Scheme and for 8 Rajendra Himmatrao Patil & Others such amount received under the VRS, 2019, the assessee(s) are only eligible for the exemption to the extent of Rs.5.00 lakh as provided u/s.10(10C) of the Act.
8. We are of the considered opinion that Ld.CIT(A) should have condoned the delay as assessee had filed elaborate explanation regarding delay and there was sufficient cause for delay. These Assessee have filed Returns of Income based on professional Advise received at that point of time. However, subsequently they made revised claim before CIT(A).
8.1 Substantial justice is more important than the procedural delay. The Hon'ble Bombay High Court in the case of Vijay Vishin Meghani vs DCIT [2017] 398 ITR 250 (Bombay) has condoned the delay of 2984days , which was on account of professional advice of a CA.
9. The identical issue of BSNL employees is decided by ITAT Pune in favour of assessee in ITA Nos.290 and 293/PUN/2026,ITA Nos.294 and 295/PUN/2026. ITAT Pune has relied on the decision of ITAT Ahmedabad in the case of Jayeskumar Sutaria vs ITO ,ITAT has extensively reproduced the decision and finally allowed the appeal of the assessee. The relevant paragraph of the said order is reproduced here under :
Quote, "15. Further, I find the Coordinate Bench, Ahmedabad in the case of Jayeshkumar Tulsidas Sutaria Vs. ITO (supra) following the decision of Coordinate Bench, Chandigarh in the case of Harish Kumar vs. ITO Ward- 5(5), Chandigarh -ITA No. 42/CHD/2025 order dated 30.05.2025 has decided the issue in favour of the assessee by observing as under :
"3. The assessee was employed with Bharat Sanchar Nigam Limited (BSNL), a Government of India enterprise. BSNL notified the Voluntary Retirement Scheme (VRS) 2019 on 04.11.2019, 9 Rajendra Himmatrao Patil & Others which was duly approved and implemented by the employer. The assessee opted for the scheme and accordingly received compensation under the VRS, as per the terms laid down by BSNL. It is submitted that the assessee had not been paid regular salary for several months prior to opting for the scheme and was under severe financial and professional uncertainty. In view of these circumstances, the assessee opted for the scheme as a measure of financial security. The compensation received by the assessee was in the nature of compensation under the BSNL VRS-2019 scheme. The compensation amount received under the scheme was offered to tax in the return of income due to lack of awareness regarding the exemption available under section 10(10B) of the Income-tax Act, 1961. The employer had also deducted tax at source on the said amount. No exemption was claimed in the original or revised return of income. The CPC, Bengaluru issued an intimation under section 143(1) for the said year without granting any exemption, and no rectification or appeal was initiated at that time. It was only upon learning about the recent judgment of the Hon'ble ITAT Chandigarh Bench in the case of Harish Kumar vs. ITO Ward 5(5), Chandigarh (ITA No. 42/CHD/2025, dated 30.05.2025) that the assessee became aware that the compensation received under the BSNL VRS-2019 scheme is eligible for exemption under section 10(10B), subject to compliance with Rule 2BA.
4. Aggrieved by the orders of the Assessing Officer, the assessee carried the matter in appeal before the Ld.CIT(A), who dismissed the appeal of the assessee as non maintainable by observing as follows:
"...In the present case, the delay in filing of the appeal is almost four years which is an inordinate and huge delay. Moreover, as has been elaborately discussed above, the appellant has also failed to provide any reasonable ground that could assist the first appellate authority to draw sufficient cause for the inordinate delay of 1,396 days in filing of this appeal. The inordinate delay in the present case, if condoned, would make the term ''Sufficient cause" in section 249(3) of the Income Tax Act, 1961 hollow and meaningless.
20. In light of the facts of the case, provisions of the Income Tax Act, 1961 and judicial decisions in the matter as discussed above, I am constrained to conclude that the appellant has failed to submit any reasonable ground for condoning the inordinate delay of 1,396 days i.e almost four years in filing this appeal. Being bereft of any sufficient cause as envisaged in section 249(3) of the Act, the appeal cannot be admitted. Since the appeal is not maintainable, there is no need to adjudicate on the merits therein.
5. Aggrieved by the orders of the Ld.CIT(A, the assessee is in further appeal before us.10
Rajendra Himmatrao Patil & Others
6. We have gone through the records and considering the merits of the case, we condoned the delay and proceed to adjudicate the issue.
7. The Ld. Counsel for the assessee submitted that due to lack of awareness of the legal provisions at the time of filing the return of income, the assessee inadvertently offered the compensation received under BSNL VRS-2019 to tax. Subsequently, based on the decision of the Hon'ble ITAT Chandigarh Bench in Harish Kumar vs. ITO Ward 5(5), Chandigarh (ITA No. 42/CHD/2025 dated 30.05.2025), wherein compensation under the same BSNL VRS-2019 scheme was held to be exempt under section 10(10B), the assessee now seeks exemption of such compensation. We find that the assessee filed theclaim before the Ld. CIT(A) and since the income of the assessee is not taxable, the assessee is eligible for the refund of the TDS.
8. In the result, both the appeals of the assessee are allowed."
16. The contention of ld. DR that only a 'workman' as defined under the Act is eligible for benefit u/s.10(10B) of the Act has no force as the Hon'ble High Court of Madras in the case of Hindustan Photo Film Workers Welfare Centre vs. Govt. of India (2018) 400 ITR 299 (Madras) has held that benefit u/s.10(10B) would be applicable to all employees covered by the scheme.
17. In light of the above decisions which are squarely applicable on the facts of instant cases and the consistent view taken by the Coordinate Benches, I am of the considered view that the alleged sum is in the nature of Retrenchment Compensation received by the assessee(s) in appeal, under the forced retirement scheme as per the standing orders dated 29.10.2019 issued by the Union Cabinet for the revival plan of BSNL/MTNL and such compensation falls under the provisions of section 10(10B) of the Act and not u/s.10(10C) of the Act and therefore the alleged sum is in the nature of Capital receipt exempt from tax. In order to get relief as has been directed in this order, assessee(s) are directed to place revised computation of income before the respective Jurisdictional Assessing Officers claiming the exemption u/s.10(10B) of the Act as discussed (supra) and thereafter the Revenue authorities shall grant the refund (if any) entitled to the assessee(s) after due verification of such revised computation of income. Impugned findings of ld.CIT(A) are set aside. Common issue raised in the Grounds of appeal raised by respective assessee(s) stands allowed."
9. Since the facts in the instant bunch of appeals are same, therefore, following the same parity of reasoning, I hold that the alleged sum received under BSNL Voluntary Retirement2019 Scheme is in the nature of Retrenchment Compensation received by the assessee(s) in appeal and such compensation falls under the provisions of section 10(10B) of the Act and not u/s.10(10C) of the Act and is in the nature of Capital receipt exempt from tax. Assessee(s) are directed to place revised computation of income before the respective Jurisdictional Assessing Officers claiming the exemption 11 Rajendra Himmatrao Patil & Others u/s.10(10B) of the Act of the alleged sum and thereafter the Revenue authorities shall compute the tax liability and grant the refund (if any) entitled to the assessee(s) after due verification of such revised computation of income. Impugned findings of ld.CIT(A) are set aside and the common issue raised in the Grounds of appeal by respective assessee(s) stands allowed."Unquote.
10. Before us the Ld.AR also filed copies of the Orders of CIT(A) who have condoned the delay in identical facts and allowed the appeal of the assessee who were BSNL employees.
11. In following cases the CIT(A) has condoned the delay and allowed those BSNL employees Appeal on identical facts.
12Rajendra Himmatrao Patil & Others
12. Respectfully following the decision of ITAT Pune (supra) we hold that the impugned amounts were exempt from tax. Assessee(s) are directed to place revised computation of income before the respective Jurisdictional Assessing Officers claiming the exemption u/s.10(10B) of the Act of the alleged sum and thereafter the Revenue authorities shall compute the tax liability and grant the refund (if any) entitled to the assessee(s) after due verification of such revised computation of income. Impugned findings of ld.CIT(A) are set aside and the common issue raised in the Grounds of appeal by respective assessee(s) stands allowed.
13. Accordingly, Appeals of the assessee(s) are allowed.
Order pronounced in the open Court on 27th March, 2026.
Sd/- Sd/- (VINAY BHAMORE) (DIPAK P.RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER
पुणे / Pune; दनांक / Dated : 27 March, 2026/ Sujeet th आदेशक ितिलिपअ ेिषत / Copy of the Order forwarded to :
1. अपीलाथ / The Appellant.
2. यथ / The Respondent.
3. The CIT(A), concerned.
4. The Pr. CIT, concerned.
5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, "एस.एम्.सी." बच, पुणे / DR, ITAT, "SMC" Bench, Pune.
6. गाडफ़ाइल / Guard File.
आदेशानुसार / BY ORDER, // TRUE COPY // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.
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