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TMI Blog2023 (12) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the assessee is entitled for exemption on the amount of leave encashment of 280 days leave earned during the period before absorption into BSNL to the tune of Rs. 8,60,776/- and 20 days of leave to the tune of Rs. 61,484/- as per provisions of sub section 2 of section (10AA) - Coordinate Bench of the Ahmedabad Tribunal on similar facts and circumstances allowed the appeal of the assessee in the case of Pradipkumar Bhogilal Modi Vs. ADIT(CPC) Bengaluru [ 2023 (7) TMI 1328 - ITAT AHMEDABAD] - Appeal of assessee allowed. - Shri Duvvuru Rl Reddy, Hon ble Judicial Member For the Appellant : Shri Y.Surya Chandra Rao, AR For the Respondent : Shri Madhukar Aves, DR ORDER PER SHRI DUVVURU RL REDDY, JUDICIAL MEMBER : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um received for 280 days of leave to the tune of Rs. 8,60,776/- is exempted under sub section 1 of section (10AA) as entire amount is exempted for a central government employee. The sum received for 20 days of leave to the tune of Rs. 61,484/- is exempted under sub section 2 of section (10AA) as entire amount is exempted as it is below the threshold limit of Rs. 3,00,000/- as notified. As the system was not accepting the combination of the two exemptions allowable to the assessee, the assessee prayed to consider the factual and legal position and grant relief by allowing the entire amount of Rs. 9,22,260/- received as leave encashment at the time of retirement instead of restricting the same to Rs. 3,00,000/-.The CPC has calculated the exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has failed to appreciate the fact that the BSNL was converted by the Government of India from the Department of Telecom and service rendered in the Department of Telecom is deemed to be service rendered as a Government employee and eligible for exemption at the time of retirement. 3. The CIT(A) is not justified in rejecting the plea of the Appellant and restricting the Leave Encashment to Rs. 3,00,000/- u/s 10(10AA). 4. The CIT(A) has failed to appreciate the fact that the Appellant has rendered Service to the Government of India (Central Government Employee) and leave encashment received at the time of retirement is fully exempted u/s 10(10AA) of the Income Tax Act in the case of Government Employees. 5. The CIT(A) has faile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to uphold the same and dismiss the appeal of the assessee. 7. I have heard both the parties and perused the material filed on record. Now, the question before me is to decide whether the assessee is eligible for the benefit of full exemption of leave encashment under section 10(10AA) of the Act or not. It is undisputed fact that the assessee joined the Department of Telecom in the year 1981 which was corporatized by the Govt.of India in the year 2000. Presidential Order thereby absorbing the assessee permanently into BSNL with effect from 01.10.2000 was passed and the leave at the credit of the assessee was transferred to BSNL on the date of absorption as provided for under Sub Rule 24(b) of Rule 37-A of the CCS(Pension) Rules. I am of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. The CIT(A) as well as the Assessing Officer has not taken cognizance of these facts and wrongly denied the benefit of exemption of leave encashment under Section 10(10AA) of the Act. In fact, in Para 4.3 of the CIT-A s order the decision of the Tribunal, Mumbai Bench in case of Babulal Patel has been quoted but the same was not at all consider. Therefore, the appeal of the assessee is allowed. Keeping in view the facts and circumstances of the case and respectfully following the decision of the coordinate bench of the Ahmedabad Tribunal, I find force in the submissions of the Ld.AR and accordingly allow the appeal of the assessee. 8. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 29th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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