The ITAT held that leave encashment of ₹20.29 lakh received on retirement qualified for exemption as it was within the revised ₹25 lakh ceiling. The Assessing Officer was directed to allow the full claim.
The ITAT allowed exemption of ₹15.93 lakh towards leave encashment after applying the revised ₹25 lakh ceiling under Notification No. 31/2023. The tax demand raised by the CPC was deleted.
The dispute concerned restriction of leave encashment exemption to ₹3 lakh. The Tribunal allowed the full claim after applying the revised exemption limit of ₹25 lakh.
The ITAT held that leave encashment of ₹17.68 lakh qualified for exemption under Section 10(10AA) since it was within the revised ₹25 lakh ceiling. The appeal was allowed on the basis of the enhanced exemption limit.
The dispute concerned partial denial of leave encashment exemption under Section 10(10AA). The Tribunal granted relief after finding that the amount claimed fell within the revised exemption limit.
The assessee challenged the reduction of leave encashment exemption through a rectification order. The ITAT ruled that the absence of an opportunity of hearing necessitated fresh proceedings.
The ITAT allowed full exemption of leave encashment received on retirement after noting that the CBDT had increased the exemption ceiling to ₹25 lakh. The key takeaway is that claims within the revised limit are eligible for exemption.
