Full Leave Encashment Exemption Allowed as CBDT Raised Section 10(10AA) Limit to ₹25 Lakh

Ram Charan Gupta Vs ITO (ITAT Jaipur) The appeal before the Income Tax Appellate Tribunal (ITAT), Jaipur, arose from an order of the National Faceless Appeal Centre (NFAC) for Assessment Year 2020-21, which had upheld the CPC Bengaluru’s processing of the assessee’s return under Section 143(1) of the Income Tax Act. The assessee, a retired bank employee, had received leave encashment of ₹6,97,100 on retirement and claimed the entire amount as exempt under Section 10(10AA) of the Act. However, while processing the return, the CPC allowed exemption of only ₹3,00,000 and treated the balan...