2024 (11) TMI 1061

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....eby he disposed of the appeals filed by the assessee against orders passed by the Assessing Officer, all dated 07.11.2013, passed under Section 201(1) & 201(1A) of the Act, treating the assessee as in default for non-deduction of Tax At Source for Assessment Years (AYs) 2017-18, 2020-21, 2021-22 & 2023-24). 2. The only grievance raised by the assessee in all these appeals is as under:- "The LAO has grossly erred in law and on facts as well as in law and considered the appellant as deductor in default under section 201 of the I.T. Act 1961 for not deducting TDS on certain payment of leave encashment to certain employee." 3. The relevant facts as culled out from the records are as under:- 3.1 The Assessee is a Local Authorit....

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.... on superannuation or otherwise ; (ii) any payment of the nature referred to in sub-clause (i) received by an employee, other than an employee of the Central Government or a State Government, in respect of so much of the period of earned leave at his credit at the time of his retirement whether on superannuation or otherwise as does not exceed ten months, calculated on the basis of the average salary drawn by the employee during the period of ten months immediately preceding his retirement whether on superannuation or otherwise, subject to such limit as the Central Government may, by notification in the Official Gazette, specify in this behalf having regard to the limit applicable in this behalf to the employees of that Government ....

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....xamined. The Section 10(10C) reads as under:- (10C) any amount received or receivable by an employee of- (i) a public sector company ; or (ii) any other company ; or (iii) an authority established under a Central, State or Provincial Act ; or (iv) a local authority ; or (v) a co-operative society ; or (vi) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956) ; or (vii) an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961) ; or (....

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....eparation, no exemption under this clause shall be allowed to him in relation to such, or any other, assessment year; 7.4 This sub-section 10C deals with exemption of taxable amount received by employee on voluntary retirement or termination of services. This sub-section 10C has increased the ambit of exemptions beyond State and Central Govt. employees and includes employees of PSUs, local authorities, co-operative societies, universities and authorities established by State or Central Acts. Thus, sub-section 10C has got a wider ambit to include employees beyond State and Central Govt. 7.5 Sub-section 10CC is also examined. This section reads as under:- (10CC) in the case of an employee, being an individual deriving income in....