Uma Dutt Sharma Vs ITO (ITAT Lucknow)
Lucknow Tribunal dealt with exemption on leave encashment received by a retired SBI employee. Assessee had claimed exemption of entire Rs.9,04,635 u/s 10(10AA)(ii). AO, while processing return, restricted the exemption to Rs.3,00,000 & disallowed Rs.6,04,635. CIT(A) upheld the restriction.
Before Tribunal, assessee argued that CBDT Notification No.31/2023 dated 24.05.2023 enhanced exemption limit for non-Government employees to Rs.25 lakhs, with retrospective effect, & therefore earlier restriction was no longer valid.
Tribunal noted that the notification was not available when assessment order was passed, but now being retrospective, AO must reconsider assessee’s claim in light of the enhanced limits. Therefore, appellate order was set aside & matter restored to AO for fresh decision after verification & after providing reasonable opportunity. Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT LUCKNOW
(A) This appeal vide I.T.A. No.655/Lkw/2025 has been filed by the assessee for assessment year 2019-20 against impugned appellate order dated 08/02/2023 (DIN & Order No. ITBA/NFAC/S/250/2022-23/1049551618(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].
(B) This appeal has been filed by the assessee, beyond time limit prescribed under section 253(3) of IT Act. The assessee has submitted application, duly supported by affidavit, for condonation of delay in filing of the appeal pleading that the delay was unintentional and beyond the control of the assessee and has requested to admit the appeal for hearing. The learned Sr. Departmental Representative for Revenue did not express any objection to assessee’s application for condonation of delay in filing of the appeal. In view of the foregoing, and in specific facts and circumstances of the present appeal before us, the delay in filing of this appeal is condoned; and the appeal is admitted for hearing.
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