Full Leave Encashment Exemption Allowed as Revised ₹25 Lakh Limit Covered Entire Claim

Govind Chhatwani Vs CIT (Appeals) (ITAT Jaipur) The appeal before the Income Tax Appellate Tribunal (ITAT), Jaipur, arose from an order of the National Faceless Appeal Centre (NFAC) for Assessment Year 2020-21. The dispute concerned the assessee’s claim for exemption of leave encashment amounting to ₹17,68,479 under Section 10(10AA) of the Income Tax Act. The Central Processing Centre (CPC), while processing the return under Section 143(1), restricted the exemption to ₹3,00,000 and added the balance amount of ₹14,68,480 to the assessee’s income. The assessee’s appeal before the CIT...