Summary
- The Delhi ITAT has ruled that ex-gratia compensation received by a retired BSNL employee under the Voluntary Retirement Scheme, 2019 is exempt from tax under Section 10(10B) of the Income-tax Act.
- This decision allows the employee to claim exemptions for the assessment years 2020-21 and 2021-22, rejecting previous rejections by lower authorities regarding amounts of Rs.13,18,139 and Rs.24,75,190.
- The Tribunal relied on precedents from other ITAT benches that treated similar BSNL VRS compensation as retrenchment compensation, emphasizing substantial justice over procedural delays.
- This ruling could set a significant precedent for other BSNL employees seeking similar tax
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