1985 (12) TMI 112

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.... the ITO to allow exemption under s. 10(10AA) of IT Act on leave encashment though the receipt was not on account of retirement." 2. The assessee having received Rs. 13,553 as leave encashment salary, claimed to be exempt under s. 10(10AA) of the IT Act, 1961, but the claim stood negatived at the assessment stage with the reasoning that leave encashment is exempt from tax if it is received at the....

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.... order of the ITAT, Madras and Bangalore Benches where it is claimed that the ITAT held that even in case where the assessee received leave encashment while in service, it was exempt from tax being capital receipt (details about the reliance of the orders of the ITAT is lacking in the order of the ld. AAC). 3. The revenue being aggrieved is in appeal and we have heard the parties at length. Sec. ....