Leave Encashment Disallowance Set Aside as Revised ₹25 Lakh Limit Was Recognized

Om Prakash Khandelwal Vs ITO (ITAT Jaipur) The appeal before the Income Tax Appellate Tribunal (ITAT), Jaipur, concerned a retired employee who had received ₹15,16,271 as leave encashment during the relevant assessment year. While processing the return under Section 143(1) of the Income Tax Act, the Central Processing Centre (CPC), Bengaluru, issued an intimation on 31 January 2023 allowing exemption under Section 10(10AA) only to the extent of ₹3,00,000 and disallowing exemption on the balance amount of ₹12,16,271. Aggrieved by the restriction, the assessee filed an appeal before the CI...