RAJINDER KUMAR,DEHRADUN vs. INCOME TAX OFFICER, WARD-1(1)(3), DEHRADUN

ITA 291/DDN/2026Status: DisposedITAT Dehradun07 August 2026AY 2020-216 pages
AI SummaryAllowed

What were the facts?

The assessee received ex-gratia and leave encashment upon early retirement from BSNL. Initially offered to tax, the assessee later claimed exemption under Sections 10(10B) and 10(10AA) via a rectification application. The claim for ex-gratia was allowed, but the leave encashment exemption was restricted to the pre-enhanced limit.

What did the Tribunal hold?

The Tribunal held that the enhanced limit for leave encashment exemption under Section 10(10AA) should be applied retrospectively, following the beneficial nature of the amendment and various coordinate bench decisions. The assessee is entitled to the enhanced exemption limit.

What were the issues?

Whether the enhanced limit for leave encashment exemption, notified in 2023, is applicable retrospectively to assessment years prior to the notification, specifically AY 2020-21.

Which sections of the Income-tax Act were involved?

Section 10(10B),Section 10(10AA)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN BENCH “SMC” DEHRADUN

Before: SHRI MAHAVIR SINGH & SHRI SANJAY AWASTHI

For Appellant: Shri Harmanjot Singh, CA
For Respondent: Shri Mohan Lal Joshi, Sr. DR
Hearing: 21.07.2026

PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

1.

This appeal arises from order dated 31.03.2026, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), by Ld. Addl./JCIT(Appeals)-9, Mumbai.

1.

1 In this case, the assessee had received certain ex-gratia and leave encashment from M/s BSNL on accepting early retirement. It is seen that the assessee had offered the receipts under these two heads to tax, apparently due to ignorance of law. The Ld. AO, CPC processed the return of the assessee and accepted the returned income. Thereafter, the assessee apparently moved a rectification application claiming such 1 RAJINDER KUMAR

The order continues below.

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