TaxTMI 
TaxTMI 
2025 (10) TMI 1370
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...., the "CIT(A)/NFAC"], Delhi's orders dated 24.02.2023 and 25.01.2023 having DIN and Order Nos. ITBA/NFAC/S/250/2022-23/1050089422(1) and ITBA/NFAC/S/250/2022-23/1049079377(1) involving proceedings under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'), respectively. 2. Heard both the parties. Case files perused. 3. It transpires during the course of hearing that both the assessees' sole substantive ground raised in the instant appeals challenge the learned lower authorities' action denying section 10(10AA) leave encashment exemption thereby holding that they are not entitled for the same since employed in bank and not a central or state government department. 4. It is next noticed that recently the ....
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....ees of the Public Sector undertaking and Nationalized banks, filed writ contending that they were discriminated against Central Government 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 Nationalized 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 empl....
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....on no. cpc/2021/A3/186338352 dt.02/12/2021) allowing the claim of Rs. 300000.00 u/s 10(10AA)- Earned Leave Encashment on Retirement. meaning thereby that there was enhancement 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....
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....sultantly appellant is the govt. employee and he cannot be denied the benefit of exemption u/s 10(10AA) it is also to clarify that in the definition of non govt. employee bank employee are not specified therefore he is govt. employee and is eligible for remaining balance of leave encashment Ram Charan Gupta vs. ITO 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 ....
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....se of Kamal Kumar Kalia & Ors. Vs. Union of India & Ors in WP(C) 11846/2019 dated 08.11.2019 wherein 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 Nationalized 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 ....