TaxTMI 
TaxTMI 
2023 (10) TMI 1509
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.... raised following grounds: - "1. That the order of Ld. CIT(A), NFAC, Delhi denying the exemption claimed u/sec. 10(10AA)(ii) upto Rs. 17, 68, 479/- and restricting the same to Rs. 3, 00, 000/-. 2. That assessee is a Rajasthan State Government owned company employee. 3. Any other matter with prior permission of the chair." 3. Succinctly, the fact as culled out from the records is that CPC/AO passed intimation u/s 143(1) of the Act on 19.10.2021 wherein the CPC added a sum of Rs. 14, 68, 480/- not allowing benefit to the assessee u/s 10(10AA) of the Act contending that deduction is available to the extent of Rs. 3, 00, 000/- only and therefore, the amount was added. 4. Aggrieved from the order of the CPC, the asses....
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....(4) In between assessee also filed appeal CIT (A) NFAC for order u/sec. 143(1) of Act. (5) The LD. CIT (A) NFAC, after going into details, documents as held that "As the appellant was not a State Government Employee as on 31.07.2019 the deduction claimed by the Appellant is eligible for deduction u/sec. 10(10AA)(ii) of the Income Tax Act & not u/sec. 10(10AA)(i). Whereas the law is very clear. (a) Therefore it is hereby held that the appeal filed by the appellant claiming deduction for Rs. 17, 68, 479.00 u/sec. 10(10AA)(i) of the Income Tax Act is devoid of merit and the same is hereby DISMISSED. Ground of Appeal Ground No. 1:- That the order of Ld. CIT(A), NFAC Delhi denying the exemption claimed u/sec. 10(10AA)(ii) upto ....
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.... clause 2, is allowed by CBDT up to the limit of Central Government employees. Gazette notification is only a medium to inform the limit of leave encashment entitlement of the government employee. The importance of gazette notification is not more than that. The gazette notification is into determining the exemption limit because the exemption limit has been clearly specified in the above rule which stipulates the exemption limit for all non - government. Employees to be equal to the limit of government employees. Since beginning the cabinet secretary has been getting the highest salary in government. Therefore, entitlement of leave encashment to the cabinet secretary is the limit of government employees since beginning. At present en....
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....Though the CBDT has issued a press release dated 25.05.2023 in form of notification no. 31/2023 dated 24.05.2023 where the limit of Rs. 3.00 lakh u/sec. 10(10AA)(ii) has been raised to Rs. 25.00 lakhs w.e.f. 01.04.2023. There is no link for the period 01.04.2022 to 31.03.2023 & back where there is no such notification. (Copy enclosed) The explanatory memorandum to this notification has further clarified that "No person is being adversely affected by giving retrospective effect to this notification". It is requested to consider the facts & grant relief the CIT (A) has straight way not even granted the basis old exemption u/sec. 10(10AA)(ii) of Rs. 3, 00, 000.00 & has disallowed the whole of claim of Rs. 17, 68, 479.00....
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....in the court has given following directions :- "8. We are however of the, prima facie, view that the grievances of the petitioner with regard to exemption limit under 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 there....