#Voluntary Retirement Scheme

The ITAT Agra held that ex gratia payments received under BSNLs Voluntary Retirement Scheme 2019 qualify for full exemption under section 10 10B of the Income Tax Act even if the exemption is claimed for the first time in appeal. The ruling benefits BSNL employees who opted for VRS 2019 clarifying that the fresh claim doctrine allows retrospective exemption claims.

Bombay HC dismisses contempt petition against insurer for non-payment of pension, ruling that employees must independently prove eligibility under the pension scheme even after a favorable judgment. The ruling clarifies that contempt jurisdiction cannot be invoked solely for non-compliance with prior orders without establishing entitlement.

ITAT Surat bench rules BSNL VRS 2019 compensation as exempt under Section 10(10B) of the Income-tax Act, 1961, treating it as retrenchment compensation. The ruling allows appeals and directs refund of TDS deducted on such payments.

Bombay High Court rules that workmen who voluntarily resigned under a Voluntary Retirement Scheme (VRS) and accepted full and final settlement cannot later claim lockout wages. The court held that signed receipts extinguish all future claims unless fraud or coercion is established, reinforcing the finality of settlements in employment disputes.

Calcutta HC rules that denying 1997 pay revision benefits to VRS retirees while granting them to officers violates Article 14. The court held that accrued pay scale rights survive retirement, mandating arrears payment from January 1, 1997, within four months from the Rs. 417 crore corpus. This sets a precedent for equal treatment in pay revisions under service law.