TaxTMI 
TaxTMI 
2023 (9) TMI 1756
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....3(1) by CPC, Bengaluru and the assessee was granted refund along with interest of Rs. 2,05,790/- Subsequently, a Rectification Order- u/s 154 was passed by the AO-CPC, Bengaluru on 29.10.2021 by allowing the claim of exemption u/s 10(10AA) (ii) of the Act, as against the assessee's claim of exemption u/s 10(10AA)(i) of the Act. 3. The Assessee submitted before the ld. CIT(A) as follows: 1.1 Brief facts of the case is that the Assessee had joined Himachal Pradesh St ate Electricity Board, a State Government Undertaking on 15th, June, 19 83 as Assistant Engineer and retired on 30.04.2017 after putting in almost 34 years of service from Himachal Pradesh State Electricity Board Limited. The benefit of leave encashment was allowed for holidays to be availed not during the service period . 1.2 The Himachal Pradesh State Electricity Board was established in 1971, as a body constituted under Section 5 of the erstwhile Electricity (Supply) Act, 19 48 and had been responsible for coordinated development of power potential, generation, transmission and distribution of electricity within the State of Himachal Pradesh. 1.3 Later on, "The Himachal Pradesh State ....
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....tion, to the employees of the State or Central Government, therefore, the assessee was eligible for exemption u/s 10(10AA)(i) of the Act. 1.8 Keeping in view the above the assessee also filed his return of Income on 21 /07/2018 by declaring income of Rs. 1159150/- and while filing the return of Income assessee claimed exemption u/s 10(10AA)(i). 1.9 That, the return was processed under section 143(1) return of the assessee on 03/04/2019 as per the information given by the assessee and determined the Income Tax refund of Rs. 205789 including interest of Rs. 12558. However, on 29/10/2021 Ld. AO at CPC suo-moto passed the order under section 154 and made an addition of Rs. 1513500 after allowing exemption of Rs. 3 00000 under section 10(10AA)(ii) and thus raised a demand of Rs. 529760 (including refund already paid Rs. 205790). 1.10 However, the assessee was eligible for exemption u/s 10(10AA)(i) of the Act not under section 10(10AA)(ii). Even at the time of conversion of board into company there was around 300 days earned leaves in the credit of the employee and the same was un-availed at the time of retirement. 1.11 That the assessing officer passe....
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....ly preceding his retirement [whether] on superannuation or otherwise, [subject to such limit as the Central Government may, by notification in the Official Gazette, specify in this behalf having regard to the limit applicable in this behalf to the employees of that Government. However, as per the Notification No. SO 588(E), dated 31-5-2002 issued by the CBDT the amount of exemption has been notified Rs. 300000. The limit has not been revised by the CBDT since 2002. However, as per the provision of the Act, the notification issued should have specified the limit keeping in regard the limit applicable to the employees of the govt. The said notification has not been revised since 2002, however there has been huge increase in salary since that time. Keeping in view the same, the limit should have been computed accordingly however the same has not been done. 3. Keeping in view the above it is prayed that the same may kindly be deleted or any other relief be given which this Hon'ble forum deems fit and proper in the facts and circumstances of the case. 4. The ld. CIT(A), by virtue of the impugned order, confirmed the order dated 29.10.2021 passe....
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....000/- considering him employee of PSU ignoring the clause 5(5) of Transfer Scheme of Government of Himachal Pradesh; that the Rectification Order u/s 154 of the Income Tax Act, 1961 dated 03.09.2021 is bad in law, erroneous, opposed to law, and facts of the case and, thus is liable to be set-aside / is untenable; that the Rectification order u/s 154 is a non-speaking order passed in a mechanical manner without providing any opportunity of being heard to the appellant, violating the provisions of Section 154(3) of the Income Tax Act, 1961 and the already settled Principles of natural justice; that the Order u/s 250(6) of the Income Tax Act, 1961 is erroneous and opposed to law, thus liable to be set-aside as the ld. Commissioner of Income Tax (Appeals) had dismissed the appeal of the assessee, in a hurry, with a pre- conceived mind without following the procedure prescribed u/s 250(1) of the Income Tax Act, 1961, without providing any opportunity of being heard, thus violating the already settled Principles of natural justice; that no opportunity has been provided to the assessee for making submissions stating non-applicability of the decisions being relied upon by the department; a....