https://www.taxtmi.com/caselaws?id=10161 The court ruled against the assessee, affirming the Revenue's position that exemption under section 10(10AA) of the Income-tax Act, 1961 for leave encashment payments applies only upon retirement or severance of the employer-employee relationship, not during employment. The court held that the Tribunal's broad interpretation of the exemption was incorrect, emphasizing the legislative intent for retiring employees. Additionally, the court found that the retrospective amendment to section 10(10AA) from the assessment year 1978-79 clarified the exemption's limited scope for retiring employees, leading to a judgment in favor of the Revenue on both issues. en-us Wed, 01 Dec 2004 00:00:00 +0530 Sun, 02 May 2010 23:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10161 The court ruled against the assessee, affirming the Revenue's position that exemption under section 10(10AA) of the Income-tax Act, 1961 for leave encashment payments applies only upon retirement or severance of the employer-employee relationship, not during employment. The court held that the Tribunal's broad interpretation of the exemption was incorrect, emphasizing the legislative intent for retiring employees. Additionally, the court found that the retrospective amendment to section 10(10AA) from the assessment year 1978-79 clarified the exemption's limited scope for retiring employees, leading to a judgment in favor of the Revenue on both issues. Case-Laws Income Tax Wed, 01 Dec 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10161