2025 (7) TMI 1028

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....under : ITA No. 175/Agr/2022 (A.Y. 2019-20): 2. This appeal has been preferred by the assessee, Vijay Kumar Jain, against the impugned order dated 30.08.2022 passed in Appeal No. NFAC/2018-19/10096619 by the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for the assessment year (A.Y.) 2019-20, wherein the ld. CIT(Appeals) has dismissed assessee's first appeal upholding the order dated 29.10.2021 passed u/s. 154 of the Act, restricting the allowable limit of leave encashment from assessee's claim of Rs. 7,51,755/- to Rs. 3,00,000/- only. 3. Briefly stating, the appellant/assessee, Vijay Kumar Jain, a retiree from State Bank of India, received retiral ....

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....ees of that Government. 8. Learned DR has argued that as per CBDT Notification No. SO 588(E) dated 31.05.2002, CBDT has prescribed a limit for the exemption u/s. 10(10AA)(ii) of the Act upto Rs. 3,00,000/- after 01.04.1998. Learned DR has supported the impugned order. 9. The small issue involved in this appeal is as to whether Revenue/Ld. CIT(Appeals) erred in denying assessee's claim of exemption of leave encashment of Rs. 7,51,755/- u/s. 10(10AA)(ii) of the Act restricting to Rs. 3,00,000/- only ? 10. We find that the claim of assessee relates to the assessment year 2019-20. We further find that similar question has been answered by the co-ordinate Bench of Jaipur Tribunal vide order dated 27.06.2023 passed in ITA No. 408/JPR/202....

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....oard of Direct Taxes Suomotu revised the limit for deduction u/s 10(10AA) of the Act and the revised limit now stood at Rs. 25,00,000 as specified vide notification no. 31/2023 issued by the ministry of finance. Since the leave encashment amount as claimed by the assessee is amount to Rs. 6,97,100/- which is below the revised limit of leave encashment exempt prescribed by the Board, the assessee is eligible to claim of deduction of said Rs. 6,97,100/-. Based on these observations the ld. AO is directed to allow the claim of the assessee u/s. 10(10AA) of the Act within the revised limit as prescribed. In terms of these observations the appeal of the assessee is allowed." 11. Another coordinate Bench of Jaipur Tribunal vide order dated 31.....