TaxTMI 
TaxTMI 
2026 (9) TMI 1872
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....A No.2506/Ahd/2026 for A.Y 2020-21 for the purpose of adjudication and the decision rendered in the said appeal shall apply mutatis mutandis to ITA No.2507/Ahd/2026 for AY 2021-22. 2. The assessee has raised the following grounds of appeal: 1. The Ld. CIT(A) has erred in law as well as on facts in refusing to allow fresh claim of exemption under Section 10(10B) by mis-interpreting decision of hon. Supreme Court in the case of Goetze (India) Ltd. vs CIT [2006] 284 ITR 323 (SC). 2. The Ld. CIT(A) has erred in refusing to allow fresh claim of exemption under Section 10(103) without appreciating that the Appellants case is factually identical to Harish Kumar vs. ITO (ITA No. 42/CHD/2025) as well as various decisions hon. Ah....
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....ding to the assessee, is in full compliance with the conditions prescribed under Rule 2BA of the Income-tax Rules, 1962, and is, therefore, eligible for exemption under section 10(108) of the Act. It was submitted that, due to lack of awareness of the relevant legal provisions at the time of filing the return of income, the assessee inadvertently offered the said compensation to tax. Subsequently, relying upon the decision of the Hon'ble ITAT, Chandigarh Bench, in the case of Harish Kumar vs. ITO, Ward 5(5), Chandigarh (ITA No. 42/CHD/2025 dated 30.05.2025), wherein compensation received under the same BSNL VRS-2019 was held to be exempt under section 10(10B) of the Act, the assessee now seeks exemption in respect of such compensation. ....
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....respect of the period of earned leave at their credit at the time of their retirement, whether superannuation or otherwise, hereby specifies the amount of Rs. 25,00,000 (twenty-five lakhs rupees only) as the limit in relation to employees mentioned in that sub-clause who retire, whether on superannuation or otherwise. 2. This notification shall be deemed to have come into force with effect from the 1st day of April, 2023. [Notification No. 31/2023/F. No. 200/3/2023-ITA-I] SOURABH JAIN, Under Secy. Explanatory Memorandum: It is hereby certified that no person is being adversely affected by giving retrospective effect to this notification." 4. Thus in view of such notification section 10(10AA) sub ....
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.... as leave encashment which was claimed in the return of income filed as exempt u/s 10(10AA) of the Act. The CPC and ld. CIT(A) contended that in the light of this specific notification being not issued the leave encashment allowable up to Rs. 3,00,000/- only whereas we note from the submission of the assessee that the assessee has relied upon the notification No. 31/2023/F.No. 200/3/2023-ITA-1 dated 24th May, 2023 and submitted that the revised limit of Rs. 25,00,000/- increased on account of leave salary is applicable and to be considered in the light of fact that government has issued this notification belatedly. The assessee has already claimed the leave salary as exemption the benefit should be given to the assessee. The similar issue h....
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....y the Central Board of Direct Taxes Suo motu 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." On being consistent to the said finding, we he....