Chandra Prakash Vashistha Vs ITO (ITAT Jaipur)
ITAT Jaipur Allows Leave Encashment Exemption-CBDT Notification 31/2023 Enhancing Limit to ₹25 Lakh Held Retrospective; Retired Bank Employee Entitled to ₹25 Lakh Leave Encashment Exemption; CBDT’s ₹25 Lakh Leave Encashment Limit Applies Retrospectively; Non-Government Retirees Can Claim ₹25 Lakh Leave Encashment Exemption
ITAT Jaipur Allows Leave Encashment Exemption-CBDT Notification 31/2023 Enhancing Limit to ₹25 Lakh Held Retrospective- Delay of 959 Days Condoned; Tribunal Grants Benefit of Enhanced Leave Encashment Limit – Beneficial Circular to Apply Retrospectively
Assessee, a retired employee of the State Bank of India, received ₹ 13,05,810 as leave-encashment on retirement. In the intimation under section 143(1), the CPC denied full exemption u/s 10(10AA), restricting it to the earlier limit of ₹ 3 lakh, & taxed the balance.
The appeal filed before CIT(A) was dismissed on 18 October 2022 both on merits & for delay. When the matter reached ITAT, Assessee explained that, being a senior citizen (65 years +), he had consulted several tax advisors before filing appeal, which caused delay of 959 days, & he filed a sworn affidavit seeking condonation.
Tribunal’s Findings/Decision
The Bench accepted the explanation, observing that Assessee’s statement on oath remained unchallenged & that the dispute concerned retirement benefits, a class of cases warranting liberal interpretation. The delay in filing appeal was therefore condoned.
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