https://www.taxtmi.com/caselaws?id=789187 Leave encashment exemption could not be extended beyond the statutory ceiling of Rs. 3 lakhs under section 10(10AA)(ii) for the relevant assessment year. The Tribunal held that the existing notified upper limit continued to apply and that any retrospective enhancement of the limit was a matter of executive policy, not judicial direction. An earlier Delhi High Court notice order was treated as insufficient authority, while the Kerala High Court decision was treated as binding support for rejecting retrospective revision. The enhanced exemption claim was therefore disallowed and the related addition sustained. en-us Fri, 27 Mar 2026 00:00:00 +0530 Sat, 04 Apr 2026 08:53:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789187 Leave encashment exemption could not be extended beyond the statutory ceiling of Rs. 3 lakhs under section 10(10AA)(ii) for the relevant assessment year. The Tribunal held that the existing notified upper limit continued to apply and that any retrospective enhancement of the limit was a matter of executive policy, not judicial direction. An earlier Delhi High Court notice order was treated as insufficient authority, while the Kerala High Court decision was treated as binding support for rejecting retrospective revision. The enhanced exemption claim was therefore disallowed and the related addition sustained. Case-Laws Income Tax Fri, 27 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789187