2025 (3) TMI 1610

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....eave encashment limit from 3 Lakhs to 25 Lakhs u/s. 10(10AA) of the Act and relevant decision of Honourable Delhi High Court and wrongly sustain Ld. AO order of allowing deduction u/s 10(10AA) for leave encashment of Rs. 3,00,000/- instead of Rs. 12,13,200/-. Hence, full claim of Rs. 12,13,200/- must be allowed as within the limits prescribed. 2. The Assessee craves the right to add, delete, amend or abandon any of the grounds of this appeal at the time or before the actual hearing of the case. 2 The brief facts of the case are that the assessee individual filed his return of income at Rs. 20,94,750/- on 17.12.2020 and thereafter a revised return also on 05.05.2021 declaring total income at Rs. 11,81,550/-. The case of the asses....

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.... two eye operation in March 2024 and May 2024. The assessee came to know about the Ld. CIT(A)'s order only on 7th November 2024, when he received a notice from the department under the DTVSV. Thereafter, the assessee checked his portal and downloaded the Ld. CIT(A)'s order and filed the present appeal before us. We found the explanation filed by the assessee as reasonable, hence delay in filing of this return is condoned. 4 The only issue for our consideration is whether the assessee is entitled to claim the deduction at Rs. 12,13,200/- or at a figure of Rs. 3 Lacs as allowed by the AO, for better understanding, we are reproducing herein below the relevant provisions of the section 10(10AA) of the Act as under: 10AA) (i) any paymen....

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....ome-tax under this subclause shall not exceed the limit so specified], as reduced by the amount or, as the case may be, the aggregate amount not included in the total income of any such previous year or years. Explanation. -For the purposes of sub-clause (ii), - the entitlement to earned leave of an employee shall not exceed thirty days for every year of actual service rendered by him as an employee of the employer from whose service he has retired; 5 In the light of the provisions of sub-clause (ii) and the latest notification on this subject as reproduced herein below as under: NOTIFICATION S.O. 2276(E) [NO. 31/2023/F. NO. 200/3/2023-ITA... SECTION 10(10AA) OF THE INCOME-TAX ACT, 1961 - EXEMPTIONS - ENHANCEMENT ....