Leave encashment exemption follows the revised threshold limit where coordinate Bench rulings and CBDT notification support the claim.

Leave encashment exemption under section 10(10AA) was treated as available up to the revised threshold limit reflected in the CBDT notification. The Tribunal followed earlier coordinate Bench decisions on the same issue and, in the absence of any contrary material from the Revenue, applied consistency to reject restriction of the exemption to the earlier limit. The assessee's claim was therefore allowed within the revised limit.

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Issues: Whether the assessee was entitled to exemption for leave encashment under section 10(10AA) within the revised threshold limit.

Analysis: The Tribunal noted that the assessee's claim was identical to issues already decided by coordinate Benches, which had accepted the revised exemption limit reflected in the CBDT notification relied upon by the assessee. In the absence of any contrary material from the Revenue, the Tribunal followed the earlier decisions for the sake of consistency and held that the exemption could not be restricted to the earlier limit.

Conclusion: The assessee was held entitled to exemption on leave encashment under section 10(10AA) within the revised threshold limit, and the claim was allowed.

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