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Issues:
1. Exemption of amount received from superannuation fund under section 10(13)(ii). 2. Exemption of leave salary under section 10(10AA). Analysis: 1. The first issue in this case revolves around the exemption of an amount received from the superannuation fund under section 10(13)(ii). The appellant argued that the amount should not be exempt as the assessee was not permanently incapacitated. However, the tribunal interpreted the term "incapacitated" to include temporary incapacity that results in the employee leaving their employment. The tribunal emphasized that the incapacity need not be permanent, but it must lead to the employee resigning from their position. The medical certificates presented supported the claim of incapacity at the time of resignation, despite the assessee taking up subsequent employment. The tribunal upheld the decision of the AAC and rejected the appeal on this ground. 2. The second issue concerns the exemption of leave salary under section 10(10AA). The appellant received leave salary upon resignation and claimed exemption under this section. The ITO rejected the claim, arguing that resignation did not fall under the provision for exemption of leave salary. However, the AAC allowed the claim, considering the amount as superannuation benefit covered under section 10(10AA). The tribunal referred to a decision of the Madras High Court, which held that the provisions of section 10(10AA) are applicable even in cases of voluntary retirement due to resignation. Following this precedent, the tribunal concluded that the exemption was available to the assessee. Consequently, this ground of appeal was also dismissed. In conclusion, the tribunal upheld the decisions of the lower authorities regarding both issues, resulting in the dismissal of the appeal.
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