9911796707
TMI Blog2023 (10) TMI 1509X X X X Extracts X X X X X X X X Extracts X X X X ..... ification No. 31/2023/F.No. 200/3/2023-ITA-1 dated 24th May, 2023 and submitted that the revised limit of Rs. 25,00,000/- increased on account of leave salary is applicable and to be considered in the light of fact that government has issued this notification belatedly.
The assessee has already claimed the leave salary as exemption the benefit should be given to the assessee. The similar issue has been decided by the bench in the case of Ram Charan Gupta [2023 (6) TMI 1476 - ITAT JAIPUR]
Thus, we held that the assessee is entitled to get the deduction as claimed in the return of income u/s 10(10AA) of the Act as the limit has been increased from 3 lac to 25 lacs. Appeal of assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... rightly based on the notification prevalent at the time of deciding the appeal of the assessee. 5. As the assessee did not find any favour against the appeal filed before NFAC, assessee has preferred this appeal before this tribunal. To support the grounds of appeal so raised by the assessee the ld. AR appearing on behalf of the assessee has placed their written submission which is extracted in below; "The brief of facts of case are as under:- (1) That assessee was a employee of M/s Rajasthan Rajya Vidhyut Prasaran Nigam Ltd., (A Rajasthan Government State Undertaking whose 100% share holding is with Governor of Rajasthan, Jaipur). (2) The assessee retired during the year & received Rs. 17, 68, 479.00 as LEAVE - ENCASHMENT. Whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han Vidhyut Prasaran Nigam Ltd., (RVPN), A electric distribution company of Rajasthan State Government, Jaipur. (2) He received Rs. 17, 08, 479.00 as leave encashment (As per Rules) & claimed exempt u/sec. 10(10AA) of Act. (3) The Ld. CIT (A) has disallowed this claim (Though earlier u/sec. 154 of Act their claim has been allowed; which was denied earlier under processing) of Rs. 17, 68, 479.00 even the basic exemption of Rs. 3, 00, 000.00 has not considered. (4) The Ld. CIT (A) has disallowed the claim of assessee for only reason that he is not a Government Employee so his case does not fall in the category of section 10(10AA)(i) but falls in the category of section 10(10AA)(ii). Whereas the law is very clear. "As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leave encashment amount received by them is tax exer. As per above rule CBDT is bound to issue gazette notification as and when the leave encashment entitlement of the cabinet secretary is enhanced. But unfortunately, it was an inadvertent lapse on the part of CBDT of not issuing gazette notification after the last gazette notification no. SO 588 E dated 31.05.2002. The CBDT wants to give the tax exemption under sub - clause 10(10AA) ii of Income Tax Act, 1961 up to the limit of government employees. If BDT does not want to give the exemption up to the limit of government employees, why did they write that the amount of notification is equal to the limit of government employees? In view of the above it is very clear what the rule is & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has received a sum of Rs. 17, 68, 479/- as leave encashment which was claimed in the return of income filed as exempt u/s 10(10AA) of the Act. The CPC and ld. CIT (A) contended that in the light of this specific notification being not issued the leave encashment allowable up to Rs. 3, 00, 000/- only whereas we note from the submission of the assessee that the assessee has relied upon the notification No. 31/2023/F.No. 200/3/2023-ITA-1 dated 24th May, 2023 and submitted that the revised limit of Rs. 25, 00, 000/- increased on account of leave salary is applicable and to be considered in the light of fact that government has issued this notification belatedly. The assessee has already claimed the leave salary as exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, be filed before the next date." 8.1 Recently the Central Board of Direct Taxes Suomotu revised the limit for deduction u/s 10(10AA) of the Act and the revised limit now stood at Rs. 25, 00, 000 as specified vide notification no. 31/2023 issued by the ministry of finance. Since the leave encashment amount as claimed by the assessee is amount to Rs. 6, 97, 100/- which is below the revised limit of leave encashment exempt prescribed by the Board, the assessee is eligible to claim of deduction of said Rs. 6, 97, 100/-. Based on these observations the ld. AO is directed to allow the claim of the assessee u/s. 10(10AA) of the act within the revised limit as prescribed. In terms of these observations the appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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