TaxTMI 
TaxTMI 
2023 (6) TMI 1476
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....sed following grounds: - "1. Under the facts and circumstances of the case learned CIT(Appeal) was not justified while confirming the order passed by AO u/s 143(1) Assessing total income Rs. 1188620.00 confirming demand of Rs. 118280. 2. Under the facts and circumstances of the case learned CIT(Appeal) was not justified while restricting the claim amount to Rs. 300000 u/s 10(10AA) and rejecting the amount to Rs. 397100.00 out of Rs. 697100.00 which is earned leave encashment on retirement made by AO. 3. Under the facts and circumstances of the case learned CIT(Appeal) was not justified while confirming the order of AO treating the employer as non-government instead of government organization. 4. Kindly stay the demand. 5. Asse....
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....ent and State Government. The Central Government and State Government employees are granted complete exemption in respect of the cash equivalent of the leave salary for the period of earned leave standing to their credit at the time of their retirement. Dismissing the petition the Court held that merely because Public Sector Undertaking and Nationalised Banks are considered as State under article 12 of the Constitution of india for the purpose of entertainment of proceedings under Article 226 of the Constitution and for enforcement of fundamental right under the Constitution, it does not follow that the employees of such Public Sector Undertaking, Nationalised Banks or other institutions which are classified as 'State' Assume the status of ....
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....ent in the income amounting by Rs.397100.00 and assessing total income at Rs 1188620.00 This was made without providing any opportunity of being heard as it appears that this addition was made by treating the employee as non-government employee although no specific reasons has been informed to appellant In fact, this organization is regulated by Bylaws made by central Government, thus by no means of stretch of imagination this organization can be treated as non- central government. Therefore, AO was not justified to disallow the claim upto the extent Rs 397100.00 without assigning any specific reasons and raising the demand of RS 118820.00 U/S 143(1) 2. Under the facts and circumstances CIT (Appeal) was not justified while restricting th....
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....ecified therefore he is govt employee and is eligible for remaining balance of leave encashment amounting to RS 397100.00 meaning thereby that he is entitled for deduction of RS 10(10AA). 3. Under the facts and circumstances of the case CIT (Appeal) was not justified while confirming the order of AO treating the employer as non-government instead of government organization Our submission: it is to submit that although no reason has been mentioned in intimation send u/s 143(1) for disallowance of Rs 397100.00 out of Rs 697100.00 u/s 10(10AA) however it appears that bank has not been treated as govt employee and disallowance has been effected which is not a correct proposition as per principal of natural justice it becomes mandatory on ....
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.... Clause (ii) of Section 10 (10AA) not being raised since 1998, appears to be justified. This is so because over the decades, the pay-scales admissible to government servants, and even employees of the Public Sector Undertaking and Nationalised Banks and all others have been upwardly revised, keeping in view, the financial growth in the country as well as on account of rising inflation. The last drawn salaries have increased manifold since time and notification issued under Clause (ii) of Section 10(10AA) was lastly issued, as taken note of hereinabove, on 31.05.2002. We therefore, issue notice to the respondents limited to this aspect. 9. Issue notice, learned counsel for the respondents accepts notice. Respondents should file counter af....