Leave Encashment Exemption Limit Hiked to ₹25 Lakh: Case Remanded for Fresh Review

Sunil Kumar Bhilare Vs ITO (ITAT Pune)

Leave Encashment Exemption Limit Raised to ₹25 Lakh — ITAT Restores Case for Fresh Adjudication in Light of CBDT Notification 24-05-2023

Assessee, a retired employee of SBI, filed return for AY 2020-21 claiming exemption of ₹9,60,574 u/s 10(10AA)(ii) towards leave encashment. CPC while processing u/s 143(1) restricted exemption to ₹3 lakh as per the old limit, resulting in addition of ₹6,60,574. CIT(A) (NFAC) confirmed the adjustment, holding that the 2002 notification restricted exemption to ₹3 lakh & Â

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