Case Law Details
Shri Devendra Kumar Gupta Vs CIT (ITAT Jaipur)
ITAT Jaipur held that 100% exemption u/s. 10(10AA) denied as employees of Public Sector Undertaking (PSU) and Nationalized Banks or other Institutions which are classified as ‘State’ cannot be assumed the status of Central Government and State Government employees.
Facts- The appellant who has retired is an employee of Ajmer Vidyut Vitran Nigam Ltd. and had claimed an amount being leave encashment received as exempt u/s. 10(10AA) of the Act. However, the AO, CPC while processing the return of income has allowed of only Rs. 3,00,000/- as against 100% exemption claimed by the appellant.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Relying upon the decision of Hon’ble Delhi High Court in the case of Kamal Kumar Kalia vs. Union of India (2020) 268 Taxman 398 (Delhi) dated 08.11.2019 wherein the Hon’ble High Court while dealing with the identical issue had held that employees of Public Sector Undertaking (PSU) and Nationalized Banks or other Institutions which are classified as ‘State’ cannot be assumed the status of Central Government and State Government employees and the said decision was also followed by the Coordinate Bench of ITAT Bangalore in the case of KPTCL Davangere vs. ITO, 170 ITD 587 (Bang.)(Trib.) and the ld. CIT (A) while rightly following the aforementioned order, had dismissed the appeal of the assessee. No contrary decision has been placed on record before me in order to contradict the well reasoned findings recorded by the ld. CIT (A). Therefore, I see no reason to interfere with or to deviate from the well reasoned findings recorded by the ld. CIT (A). The appeal filed by the assessee stands dismissed.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
