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Judgment
PER VIKAS AWASTHY, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of Additional/Joint Commissioner of Income Tax (Appeals)-2, Coimbatore [in short ‘the CIT(A)’] dated 20.03.2026, for Assessment Years 2021-22.
The solitary issue in the impugned assessment year is taxability of ex-gratia compensation amounting to Rs.29,79,518/- received under Mahanagar Telecom Nigam Ltd. (MTNL) Voluntary Retirement Scheme, 2019 (VRS).
Identical issue was raised by the assessee in ITA No.4193/Del/2026 for AY 2020-21 whereby in a detailed order the ex-gratia compensation amounting to Rs.13,33,672/-received by the assessee was held to be exempt in full u/s.10(10B) Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). In the impugned assessment year, ex-gratia compensation of Rs.29,79,518/- received by the assessee after opting for VRS under MTNL-VRS 2019 is claimed as exempt u/s.10(10B) of the Act. In principle for parity of reasons the amount of ex-gratia compensation is held to be exempt u/s.10(10B) of the Act. However, for verification of the total amount received by the assessee as ex-gratia compensation and the extent of amount received in AY 2021-22, the issue is restored to AO. The AO shall allow the benefit of exemption u/s.10(10B) of the Act to the assessee on the amount of ex-gratia received during AY 2021-22.
In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose, in the terms aforesaid.