TaxTMI 
TaxTMI 
2019 (2) TMI 2069
X X X X Extracts X X X X
X X X X Extracts X X X X
....dated 25.10.2016 under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. At the outset, the learned Counsel for the assessee stated that there is delay in filing of this appeal by 129 days and qua that assessee has filed condonation petition supported by affidavit of the chartered accountant of the assessee Shri Srinivasraghavan Srivatsan, wherein he contended that the delay was on account of his advice not to file the appeal and the relevant Para 7 to 9 read as under: - "7. At that point in time, I did not foresee any chances of further relief before higher appellant authority in the case and therefore I suggested him not to file appeal before Hon'ble ITAT. 8. Consequently, no appeal was filed by h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me of retirement during the relevant FY 2013-14 relevant to AY 2014-15. For this assessee has raised the following ground: - "1. the learned commissioner of Income Tax (Appeals) erred in confirming the order of Learned Assessing Officer in denying exemption under section 10(10AA) to the tune of Rs. 723005/- while assessing total income of the appellant, out of the total amount of Rs. 1023005/-, being leave Encashment received at the time of Retirement during the relevant assessment year. Appellant submits that in view of the facts and circumstances of the case as well as in law denial of exemption under section 10(10AA) of the Act to the tune of Rs. 723005/- is bad in law and deserves to be deleted." 6. Briefly stated f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....63 and half pay leave at 395 days. The number of days of leave as on the date of absorption brought forward from Govt. of India, Ministry of Telecommunications and IT, Department of Telecommunications was at 263 and further an earned leave of 37 days was available from MTNL at the time of retirement. This fact has been communicated to the assessee vide letter No. DM(W)W1/PENSION CASE/76729/2017-18 dated 27/11/2017, wherein in the chart the MTNL has certified as under: - Sr. No Details No. of Days Amount of Encashment 1. Total No. of days for which Encashment is paid 300 Rs. 9,09,830/- 2. No. of Days of learve as on the date of absorption B/F from Govt. Service 263 No. of days of leave ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ve Encashment to the employees vide Para 1 and 2 as under: "1. The amount of leave encashment in respect of leave earned during the period before absorption is eligible for full exemption as per Section 10(10AA)(i) of the Income Tax Act, 1961/ 2. The amount of leave encashment in respect of leave accrued after absorption will be taxable after giving exemption as per section 10(10AA)(ii) of the Income Tax Act, 1961." In lieu of that the assessee of has received a total leave encashment allowances at Rs. 9,09,830/- at the time of his retirement (and not the amount of Rs. 10,23,005/- as noted by AO and CIT(A) in their orders). I find that the assessee has 263 days of earned leave as on the date of absorption from Governmen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tral Govt. Rules, framed all other such employees working in Govt. of India with effect from 24.04.1980 on adhoc basis and subsequently in permanent capacity vide order dated 22.06.1986 w.e.f 22.03.1983. The assessee was absorbed in MTNL, a Govt. of India Undertaking, w.e.f 01.10.2000 vide order dated 19.01.2004. I am of the view that as per the provisions of section 10(10AA)(i) of the Act, the assessee is entitled for exemption on the amount of leave encashment of leave earned during the period before absorption in MTNL as per section 10(10AA)(i) of the Act as applicable to Central Govt. because before that date he was employee of Govt. of India that the Central Government. The amount of leave encashment in respect of leave accrued after a....