Case Law Details
Pradipkumar Bhogilal Modi Vs ADIT (CPC) Bengaluru (ITAT Ahmedabad)
Introduction: The Income Tax Appellate Tribunal (ITAT) in Ahmedabad recently passed a significant order in the case of Pradipkumar Bhogilal Modi Vs ADIT (CPC) Bengaluru. The appeal centered around the exemption of leave encashment under Section 10(10AA) of the Income Tax Act for employees working in the Department of Telecommunication. The decision is notable as ITAT deleted the disallowance previously made by the authorities.
Analysis:
1. Background: The assessee, initially appointed in the Department of Indian Post and Telegraph, was permanently absorbed in the Department of Telecommunication in Bharat Sanchar Nigam Ltd. (BSNL). A disallowance of exemption claim amounting to Rs. 7,20,600/- for leave encashment under Section 10(10AA) was contested.
2. Arguments: The assessee’s representative argued that the exemption was fully applicable under the Income Tax Act, while the Department Representative maintained that BSNL, being a Public Sector Unit, was not exempted.
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