2016 (9) TMI 1507

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....e on 25.05.2009 declaring an income of Rs. 4,06,000/- which was processed u/s 143(1) of the Act. The AO observed that the assessee in the computation of total income annexed with the return of income claimed a sum of Rs. 4,94,340/- received as Leave Encashment to be exempted u/s 10(10AA) of the Act. The AO was of the view that the assessee was entitled for exemption on account of Leave Encashment upto return of Rs. 3,00,000/-. He accordingly made the addition of Rs. 1,94,340/- and assessed the income at Rs. 6,00,340/- by observing as under: "In view of the finding given in the foregoing paras, the employee of the CCS HAU cannot be termed as Govt. employee as neither they are under the control of Haryana Govt. nor their pay is debit....

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....other employees the exemption is available only up to 3 lakhs. The present case of the appellant falls under the second category which is covered by the provisions of section 10(10AA) (ii) of Income Tax Act. I hold that the appellant who is an employee of Haryana Agricultural University cannot be regarded as employee of State Government for the purpose of Income Tax. The present case is covered by Section 10(IOAA)(ii) of Income Tax Act and not by Section 10(10AA)(i) of Income Tax Act. Therefore, assessing officer has rightly made the additions on account leave encashment of Rs. 1,94,3407- to the total income of the assessee. Appeal of the appellant is dismissed." 5. Now the assessee is in appeal. The ld. Counsel for the assessee at the v....