ITAT Ranchi Allows Full Leave Encashment Exemption as CBDT Raised Limit to ₹25 Lakh

Advertisement Rajendra Kumar Vs ITO (ITAT Ranchi) The ITAT Ranchi allowed the appeal of an assessee challenging the restriction of exemption under Section 10(10AA)(ii) of the Income-tax Act for leave encashment received on retirement. The assessee, a retired UCO Bank employee, had received leave encashment of ₹13,20,280 during the relevant financial year and claimed exemption for the entire amount in the return of income. However, while processing the return under Section 143(1), the Assessing Officer restricted the exemption to ₹3 lakh. The CIT(A) upheld the restriction on the ground t...