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TMI Blog2024 (11) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (10AA) deals with employees of Central Govt. or State Govt. Clause (ii) of sub-section (10AA) deals with employees other than Central Govt. or State Govt. The sub-section (10AA) specifically deals with Govt. and Non-Govt. employees under two different clauses. Sub-section 10CC includes all employees who are individuals deriving income other than by way of monies. This includes every employee irrespective of category of employers. Leave encashment at the time of retirement, benefits received at the time of voluntary retirement or termination of services, and perquisites received by the employees are all defined and subjected to various provisions of the Act, namely 10(10AA) for leave salary, 10C for retirement benefits and 10CC - for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee are dismissed. - Dr. B.R.R. Kumar, Vice-President For the Appellant : Shri Kishor Parikh, CA For the Respondent : Shri Ketan Gajjar, Sr DR ORDER These four appeals have been filed by the assessee against separate orders passed by the Ld. Commissioner of Income-tax (Appeals), ADDL/JCIT(A), Patna (hereinafter referred to as CIT(A) for short), all dated 29.02.2024, passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as the Act for short], whereby he disposed of the appeals filed by the assessee against orders passed by the Assessing Officer, all dated 07.11.2013, passed under Section 201(1) 201(1A) of the Act, treating the assessee as in default for non-deduction of Tax At Source for Assessment Years (AYs) 2017-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reas the ld. DR relied on the orders of the authorities below. 7. Heard both the parties and perused the material available on records. 7.1 The provisions of Section 10(10AA) are as under:- (10AA) (i) any payment received by an employee of the Central Government or a State Government as the cash equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement whether on superannuation or otherwise ; (ii) any payment of the nature referred to in sub-clause (i) received by an employee, other than an employee of the Central Government or a State Government , in respect of so much of the period of earned leave at his credit at the time of his retirement whether on superannuation or otherwise as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent at the time of retirement. Clause (i) of sub-section (10AA) deals with employees of Central Govt. or State Govt. Clause (ii) of sub-section (10AA) deals with employees other than Central Govt. or State Govt. The sub-section (10AA) specifically deals with Govt. and Non-Govt. employees under two different clauses. 7.3 To have further clarity, sub-section 10C has also been examined. The Section 10(10C) reads as under:- (10C) any amount received or receivable by an employee of (i) a public sector company ; or (ii) any other company ; or (iii) an authority established under a Central, State or Provincial Act ; or (iv) a local authority ; or (v) a co-operative society ; or (vi) a University established or incorporated by or under a Central, S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year : Provided also that where any relief has been allowed to an assessee under section 89 for any assessment year in respect of any amount received or receivable on his voluntary retirement or termination of service or voluntary separation, no exemption under this clause shall be allowed to him in relation to such, or any other, assessment year; 7.4 This sub-section 10C deals with exemption of taxable amount received by employee on voluntary retirement or termination of services. This sub-section 10C has increased the ambit of exemptions beyond State and Central Govt. employees and includes employees of PSUs, local authorities, co-operative societies, universities and authorities established by State or Central Acts. Thus, sub-section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Municipal Corporation. Even on that lines, the VUDA will become a subset of local authority. The municipal corporations, panchayats, district boards, cantonment boards are part of local authorities as per sub-section 10(20) of the Income Tax Act, and under clause (d) and (e) of Article 234 and Article 234P of the Constitution. Thus, the local bodies are distinct from State and Central Govt. Since the exemption given on account of leave encashment, retirement and perquisites varies according to the category of employees and since exemption of leave encashment is allowed to State and Central Govt. employees in full and exemption to other than State and Central Govt. employees is upto Rs. 3 lakhs as per the provisions of Section 10(10AA), it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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