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TMI Blog2016 (9) TMI 1507X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,06,000/- which was processed u/s 143(1) of the Act. The AO observed that the assessee in the computation of total income annexed with the return of income claimed a sum of Rs. 4,94,340/- received as Leave Encashment to be exempted u/s 10(10AA) of the Act. The AO was of the view that the assessee was entitled for exemption on account of Leave Encashment upto return of Rs. 3,00,000/-. He accordingly made the addition of Rs. 1,94,340/- and assessed the income at Rs. 6,00,340/- by observing as under: "In view of the finding given in the foregoing paras, the employee of the CCS HAU cannot be termed as Govt. employee as neither they are under the control of Haryana Govt. nor their pay is debited to the consolidated funds of the state. Appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the appellant falls under the second category which is covered by the provisions of section 10(10AA) (ii) of Income Tax Act. I hold that the appellant who is an employee of Haryana Agricultural University cannot be regarded as employee of State Government for the purpose of Income Tax. The present case is covered by Section 10(IOAA)(ii) of Income Tax Act and not by Section 10(10AA)(i) of Income Tax Act. Therefore, assessing officer has rightly made the additions on account leave encashment of Rs. 1,94,3407- to the total income of the assessee. Appeal of the appellant is dismissed." 5. Now the assessee is in appeal. The ld. Counsel for the assessee at the very outset stated that the issue under consideration has already been decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the view taken in respect of arrears of gratuity u/s 10(10) should be followed for arrears of leave encashment u/s 10(10AA). The ld. DR supported this proposition. As both the sides are consensus ad idem on the position that the view taken in the context of section 10(10) as applicable to leave gratuity be followed here in the context of section 10(10AA) in the context of leave encashment, I am desisting from independently examining the later provision. In view of the fact that I have held the assessee to be entitled to exemption u/s 10(10)(i) in respect of arrears of gratuity, following the same, I extend the benefit of exemption u/s 10(10AA)(i) in respect of arrears of leave encashment. This ground is allowed." 8. Since the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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