Leave Encashment Addition Deleted as CBDT Increased Exemption Ceiling to ₹25 Lakh

Shyam Sunder Sahni Vs Asstt. Director of Income Tax (ITAT Delhi) The appeal before the Income Tax Appellate Tribunal (ITAT), Delhi, arose from an order of the CIT(A)/NFAC, Delhi, for Assessment Year 2021-22 in proceedings under Section 143(1) read with Section 264 of the Income Tax Act. The sole issue in dispute was whether the assessee, a retired employee of Canara Bank, was entitled to exemption of the full leave encashment amount received on retirement under Section 10(10AA) of the Act. The assessee had claimed exemption of ₹6,97,100 towards leave encashment received on retirement. While ...