Karthikeyan Vs ITO (ITAT Chennai)
Summary: The appeal was filed by the assessee against the order dated 20.03.2026 passed by the Learned Commissioner of Income Tax (Appeal), Addl/JCIT(A)-1, Visakhapatnam, for A.Y. 2021-22. The dispute arose from the order under section 154 read with section 143(1) of the Income-tax Act, 1961 passed by CPC, Bengaluru, concerning exemption claimed on leave encashment received on retirement.
At the threshold, the Income Tax Appellate Tribunal, Chennai Bench, considered a delay of 1,221 days in filing the appeal. The assessee explained that he was a retired employee of Bank of Baroda, aged about 65 years, and had claimed exemption of leave encashment received in F.Y. 2020-21. The exemption had been denied by CPC and the appeal had subsequently been dismissed by the CIT(A). The assessee stated that, based on the statutory provisions and judicial position prevailing at the relevant time, no effective relief appeared to be available on the issue and therefore the order was not challenged within the statutory period. Subsequently, after CBDT issued Notification No.31/2023 dated 24.05.2023 and Tribunal decisions emerged on the issue, the assessee filed the delayed appeal and sought condonation.
The Revenue opposed condonation, submitting that there was no sufficient cause for condoning such a substantial delay.
