ANANT CHINTAMAN GUNDALWAR,NAGPUR vs. ITO WARD-1 CHANDRAPUR, CHANDRAPUR

ITA 270/NAG/2026Status: DisposedITAT Nagpur10 September 2026AY 2020-20214 pages
AI SummaryAllowed

What were the facts?

The assessee, who joined Maharashtra State Electricity Board (MSEB) as a Steno Typist, retired from Maharashtra State Electricity Distribution Company Ltd. (MSEDCL). The Assessing Officer (AO) restricted the exemption for gratuity and leave encashment, stating the assessee was not a State Government employee at retirement.

What did the Tribunal hold?

The Tribunal held that the restructuring of MSEB into MSEDCL, beyond the assessee's control, should not disentitle the assessee from claiming benefits available to State Government employees. The assessee is entitled to the full exemption for gratuity and leave encashment.

What were the issues?

Whether an employee whose service was transferred due to restructuring of a state-owned entity is eligible for State Government employee exemptions on retirement benefits?

Which sections of the Income-tax Act were involved?

Section 10(10)(i),Section 10(10AA)(i),Section 147,Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR SMC BENCH, NAGPUR

Before: SHRI MANISH BORAD

For Appellant: Shri Dilip Lohiya, CA
For Respondent: Shri Shiv Shankar Yadav, Sr.DR
Hearing: 05/08/2026Pronounced: 10/09/2026

This appeal by the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi (for short, “CIT(A)”) dated 15.01.2026 passed u/sec. 250 of the Income Tax Act, 1961 (for short, “Act”) which is arising out of assessment order dated 24.03.2025 passed u/sec. 147 r.w.s. 144B of the Act for the Assessment Year (A.Y.) 2020-21. 2. Assessee has raised 16 grounds of appeal, of which the grounds raising legal issues challenging the validity of the assessment proceedings have not been pressed and, therefore same are dismissed as not pressed. On merits, the grievance is against the denial of exemption u/sec. 10(10)(i) of the Act for the gratuity amount at Rs. 6,28,245/- and exemption u/sec.

The order continues below.

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