Case Law Details
Sharad Shukla Vs ITO (ITAT Agra)
The appeal before the Income Tax Appellate Tribunal (ITAT), Agra, related to Assessment Year 2020-21 and arose from an order of the Addl./Joint Commissioner of Income Tax (Appeals), NFAC, Delhi, concerning an intimation issued under Section 143(1) of the Income Tax Act. There was a delay of 59 days in filing the appeal, which was condoned by the Tribunal.
In the intimation under Section 143(1), the exemption claimed under Section 10 was restricted to ₹20.93 lakh by disallowing leave encashment of ₹4.50 lakh. The adjustment was made on the ground that the assessee was not a government employee. The assessee contended that the entire leave encashment amount of ₹7.50 lakh was exempt under Section 10(10AA) and that the exemption should not have been restricted to ₹3 lakh.
The CIT(A) rejected the assessee’s claim, following which the matter was carried in appeal before the Tribunal. The assessee relied upon CBDT Notification No. 31/2023, which enhanced the leave encashment exemption limit to ₹25 lakh, and also referred to certain decisions of the Tribunal and the Delhi High Court in support of the claim. A grievance regarding lack of opportunity of hearing was also raised.
Considering these submissions, the Tribunal restored the matter to the file of the CIT(A) for fresh adjudication. The assessee was directed to substantiate the claim before the appellate authority. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT AGRA
1. Aforesaid appeal by assessee for Assessment Year (AY) 2020-21 arises out of an order passed by learned Addl. / Joint Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 30-11-2023 in the matter of an intimation issued by CPC u/s 143(1) on 13-06-2022. At the time of hearing, none appeared for assessee and accordingly, the appeal was heard with the able assistance of Ld. Sr. DR. The registry has noted delay of 59 days in the appeal which stand condoned.
2. From case records, it emerges that in intimation u/s 143(1), the exemption u/s 10 was restricted to Rs.20.93 Lacs by disallowing leave encashment of Rs.4.50 Lacs on the ground that the assessee was not a government employee. The assessee claimed that full leave encashment of Rs.7.50 Lacs is exempted u/s 10(10AA) instead of Rs.3 Lacs.
However, Ld. CIT(A) rejected the same against which the assessee is in further appeal before us.
3. The assessee, in its submissions, has referred to CBDT Notification No. 31/2023 enhancing such limit to Rs.25 Lacs. The assessee has also quoted certain decisions of Tribunal and Delhi High Court to buttress his submissions. A plea of lack of opportunity of hearing has also been raised. Considering all these factors, we restore the appeal back to the file of Ld. CIT(A) for de novo adjudication with a direction to the assessee to substantiate his case.
4. The appeal stand allowed for statistical purposes.
Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules,1963
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