TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1812
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....-21. 2. Brief facts of the case is that the assessee is an individual and retired from Punjab National Bank, filed his Return of Income for the Asst. Year 2020-21 on 25-12-2020 declaring total income at Rs. 5,82,970/- and making a claim of leave encashment salary of Rs. 7,65,404/- u/s. 10(10AA)(ii) of the Act. The return was processed u/s. 143(1) and the claim of deduction u/s. 10(10AA)(ii) was restricted to Rs. 3 lakhs. 3. Aggrieved against the same, the assessee filed an appeal before Ld. CIT(A) who confirmed the addition by observing as follows: "5.2 The major contention of the appellant is he should be allowed full exemption of leave encashment as government has not increased the limit under section 10(10AA) (ii) since 2002, thus hi....
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.... in numerous cases that the State undoubtedly enjoys greater latitude in the matter of taxing statute. It may impose a tax on a class of people whereas it may not do so in respect of the other class, the case of discrimination made out by assessee cannot be basis of any relief. Thus, the benefit claimed by the appellant is not available under law as the notification is applicable from 01.04.2023 and appellant has already retired in FY 2019-20. 4.5 In view of the above grounds of appeal and submissions made by the appellant the grounds of appeal of the appellant are hereby dismissed." 4. Aggrieved against the appellate order, the assessee is in appeal before us raising the following Grounds of Appeal: 1. That assessee retired from ser....
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....hers than Central/State) have been raised to Ras. 25,00,000/- (Maximum) u/sec 10(10AA) (ii) of Act: The CIT(A) considering that this notification is not with retrospective effect but w.e.f 01.04.2023 &n since Appellate has already retired in F.Y. 2019-20, hence the claim of assessee for Rs. 7,65,404/- u/sec. 10(10AA) is tenable and has restricted to Rs. 3,00,000/-. ................................ 3. The CBDT's Notification dated 24.05.2023 (No. 31/2023/F.No. 200/3/2023-ITA-1) (copy enclosed Page no. 1) clearly states that "S.O. 2276(E).-In exercise of the powers conferred by sub-clause (ii) of clause (1044) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to the maximum amount receivabl....
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....23 dated 18.02.2025 copy as enclosed." 6. Ld. Sr. D.R. appearing for the Revenue supported the order passed by the lower authorities and requested to confirm the disallowance. 7. We have given our thoughtful consideration and perused the materials available on record. This issue of deduction u/s. 10(10AA)(ii) is no more res-integra based on the decisions passed by Co-ordinate Bench of this Tribunal in the case of Govind Chhatwani Vs. CIT(Appeals) in ITA No. 385/JP/2023 dated 31-10- 2023 wherein it is held as follows: "7. We have heard the rival contentions and perused the material placed on record. The bench noted that the apple of discord in this case that the assessee has received a sum of Rs. 17,68,479/- as leave encashment which was....
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....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 affidavits be filed within six weeks. Rejoinder thereto, if any, be filed before the next date. "8.1 Recently the Central Board of Direct Taxes Suomotu revised the li....