AALOK KALLA,JODHPUR vs. COMMISSIONER OF INCOME TAX, APPEAL, JODHPUR

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ITA 1041/JODH/2025Status: DisposedITAT Jodhpur02 June 2026AY 2022-236 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal directed the AO to allow the assessee's claim for exemption of leave encashment under Section 10(10AA) as per the higher limit of Rs. 25,00,000/-, following numerous coordinate bench decisions.

What were the facts?

The assessee, a salaried individual, claimed exemption for leave encashment received on retirement. The CPC restricted this exemption to Rs. 3,00,000/-. The assessee contended that the exemption limit should be Rs. 25,00,000/- as per various ITAT decisions.

What were the issues?

The primary issue was the correct exemption limit for leave encashment under Section 10(10AA) for the assessment year in question, considering the limit applied by the CPC versus the limit established by ITAT precedents.

Which sections of the Income-tax Act were involved?

Section 10(10AA)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Appellant: Shri Rajendra Jain, Advocate
For Respondent: Shri Vaibhav Agarwal Addl, DR (Virtually)

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE DR. MITHA LAL MEENA, HON’BLE ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, HON’BLE JUDICIAL MEMBER ITA No. 1041/Jodh/2025 (Assessment Year 2022-23) Aalok Kalla CIT(A), Jodhpur 44/5, PWD Colony PWD Colony Jodhpur PAN-ABQPK9526N Assessee by Shri Rajendra Jain, Advocate (Physically) Revenue by Shri Vaibhav Agarwal Addl. CIT-DR (Virtually) Date of Hearing 13 / 05 / 2026. Date of Pronouncement 02 / 06 / 2026. ORDER PER: DR. MITHA LAL MEENA, A.M.: This appeal is filed by the assessee against the order of the Commissioner of Income Tax, Appeal ADDL/JCIT(A)-2 Visakhapatnam [hereinafter referred to as the JCIT(A)] dated 29.06.2024 with respect to assessment year 2022-23. The sole issue challenged by the assessee is related to denial of exemption under Section 10(10AA) amounting to Rs. 9,79,678/-.

2.

At the outset the Ld. AR has submitted that the assessee is a salaried individual who has received leave-encashment salary on

2 ITA No. 1041/Jodh/2025 (Assessment Year 2022-23) retirement amounting to Rs. 9,79,678/- and claim exemption under

Section 10(10AA) of the Act, however, the same was restricted to Rs.

3,00,000/- while processing the return of income of the assessee by CPC

in terms of the provision of Section 10(10AA) of the Act. The Ld. AR

contended that the various coordinate benches of ITAT in their decision

in as many as 43 cases held that limit of exemption of leave encashment

as per Section 10(10AA) of the act applicable for impugned year would

be Rs. 25,00,000/-. The Ld. Counsel has submitted the list of the said

decision vide its submissions dated 26.04.2026 as under:-

S. No. Name of the appellant Name of the Assessment ITAT Date of order and ITA No. employer year Bench 1. Mr. Ram Charan Punjab National 2020-21 Jaipur 27.06.2023 Gupta ITA No. Bank 408/JPR/2022 2. Mr. Satish Kumar Electricity Board of 2018-19 Chandigar 12.09.2023 Thakur ITA No. Himachal Pradesh h 211/CHD/2023 3. Mr. Mangala Ram BSNL 2018-19 Jaipur 04.10.2023 Nimbark ITA No. 542/JPR/2023 4. Mr. Govind Chatwani Electricity Board 2020-21 Jaipur 31.10.2023 ITA No. Rajasthan 385/JPR/2023 5. Devendra Kumar Ajmer vidyut 2020-21 Jaipur 18.02.2025 Gupta MA No. Vitaran Nigam Ltd. /49/JPR/2023 (A.O Rajasthan ITA No. 17/JPR/2023) 6. Mr. Dashrath Kumar BSNL 2020-21 Jaipur 05.03.2025 Sen ITA No. 1258/JPR/2024 7. Mr. Devi Dutt SBI 2020-21 Jaipur 13.03.2025 Agrawal ITA No. 1375/JPR/2024 8. Mr. Suman Kumar Oil and Natural Gas 2020-21 Ahmedaba 18.03.2025 Jha ITA No. Commission Ltd. d 1179/AHD/2024 Mr. Dinesh Kumar Medical 9. 2021-22 Jaipur 07/04/2025 Mittal ITA No Department

3 ITA No. 1041/Jodh/2025 (Assessment Year 2022-23) 1570/JPR/2024 Rajasthan Mr. Shyam Sunder 10. Sahni ITA No Canara Bank 2021-22 Delhi 21/04/2025 129/DEL/2025 Mrs. Neelam Gupta 11. ITA No Bank of Baroda 2020-21 Delhi 21/04/2025 081/DEL/2025 Mr. Sharad Shukla ITA 12. State Bank of India 2020-21 Agra 22/04/2025 No 108/AGR/2024 Mr. Vijay Kumar Jain 13. State Bank of India 2019-20 Agra 18/06/2025 ITA No 175/AGR/2022 Mr. Anil Kumar Khatri 14. State Bank of India 2020-21 Agra 18/06/2025 ITA No 187/AGR/2022 Mr. Goverdhan Punjab National Ahmedab 15. Bhambhani ITA No 2020-21 28/07/2025 Bank ad 289/AHD/2025 Mrs. Sujita Gupta ITA State Bank of 16. 2022-23 Jaipur 31/07/2025 No 915/JPR/2025 Bikaner & Jaipur Mr. Om Prakash Life Insurance 17. Khandelwal ITA No 2022-23 Jaipur 06/08/2025 Corporation of India 887/JPR/2025 Mr. Gobind Khattar ITA 18. BSNL 2020-21 Delhi 25/08/2025 No 4414/DEL/2025 Mr. Ashok Arora ITA 19. Punjab & Sind Bank 2021-22 Delhi 28/08/2025 No 2942/DEL/2025 Mr. Chandra Prakash 20. Vashishtha ITA No State Bank of India 2021-22 Jaipur 07/10/2025 1139/JPR/2025 Mr. Vimal Kumar Chandigar 21. Attrey ITA No Punjab & Sind Bank 2022-23 13/10/2025 h 1089/CHD/2024 Mr. Nanu Lal Meena 22. State Bank of India 2019-20 Jaipur 14/10/2025 ITA No 1024/JPR/2025 Mr. Vinod Kumar 23. Ajmera ITA No State Bank of India 2020-21 Jaipur 14/10/2025 1228/JPR/2025 Mr. Rajiv Kumar 24. Wadhwa ITA No Canara Bank 2020-21 Delhi 29/10/2025 5897/DEL/2025 Mr. Vijay Pal Gupta ITA 25. Canara Bank 2020-21 Delhi 29.10.2025 No. 5915/Del/2025 Mr. Balakram 26. Bank of Baroda 2020-21 Mumbai 30.10.2025 Hiranand Lohana ITA

4 ITA No. 1041/Jodh/2025 (Assessment Year 2022-23) No. 3791/Mum/2025 Mr. Sudhakar G. 27. Paldewar ITA No. SBI 2020-21 Pune 31.10.2025 1781/Pun/2025 Mr. Sunil Kumar 28. Bhilare ITA No. State Bank Of India 2020-21 Pune 03/11/2025 2014/PUN/2025 Mr. U. D. Sharma ITA 29. State Bank of India 2019-20 Lucknow 14/11/2025 No 655/LKW/2025 Mr. Ram Dev Daiya ITA Life Insurance 30. 2020-21 Jaipur 01/01/2026 No 1280/JPR/2025 Corporation of India Smt. Khadija Sainual 31. Abeeb Nalakath. ITA Bank of Baroda 2020-21 Mumbai 12/01/2026 No 7006/Mum/2025 Mr. Sunil Kumar 32. Saxena ITA No Canara Bank 2020-21 Delhi 22/01/2026 8780/Del/2025 Smt. Kamlesh Tyagi Punjab National 33. 2020-21 Delhi 22/01/2026 ITA No 8789/Del/2025 Bank Mr. Gyanedra Punwar 34. Bank of Baroda 2017-18 Delhi 11/02/2026 ITA No 238/DDN/2025 Mr. Annasaheb 35. Devagouda Patil ITA Dena Bank 2019-20 Pune 24/02/2026 No 3358/PUN/2025 Mr. Narendra Kumar 36. Mishra ITA No BSNL 2020-21 Indore 27/02/2026 233/IND/2025 Mr. Bhagat Singh Punjab National 37. Rawat ITA No 2020-21 Lucknow 10/03/2026 Bank 911/LKW/2025 Mr. Prem Chand Khichi 38. Union Bank of India 2022-23 Delhi 16/03/2026 ITA No 504/DEL/2026 Mr. Satish Chandra Oriental Bank of 39. Tyagi ITA No 2019-20 Delhi 20/03/2026 Commerce 8770/DEL/2025 Mr. Mohdhussian Ahmedab 40. Gulamhussian Qureshi Bank of Baroda 2020-21 07/04/2026 ad ITA No 295/AHD/2026 Mrs. Sandhya 41. Bhargava ITA No State Bank Of India 2019-20 Jaipur 08/04/2026 1731/JPR/2025 Punjab National Mr. Arun Kumar 42. 2022-23 Ranchi 21.04.2026 Bank Baranwal ITA No.

5 ITA No. 1041/Jodh/2025 (Assessment Year 2022-23) 336/RAN/2025 Mr. Sudhir Sharma 43. ITA No. Bank of India 2020-21 Ranchi 22.04.2026 459/RAN/2025

3.

The Ld. DR fairly admitted that the issue was covered in favour of the assessee as pointed out by the Ld. Counsel and he did not bring any contrary decision of ITAT in this regard nor he was able to bring to our notice any decision of a higher judicial authority holding a contrary view. 4. Admittedly the facts of the present case are identical to various judgment/ decisions placed on record by the assessee, where the revenue had not contradicted the same with any contrary decision. We, therefore, direct the AO to allow the assessee’s claim of exemption of leave encashment under Section 10(10AA) of the Income Tax Act for the assessment year under consideration. 5. In the result, the appeal of the assessee is allowed.

Order pronounced on 02 / 06 / 2026 in the open court.

Sd/- Sd/- (SUDHIR PAREEK) (DR. MITHA LAL MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 02 / 06 / 2026. Pritesh Vaishnav PS

6 ITA No. 1041/Jodh/2025 (Assessment Year 2022-23) True Copy Copies to : (1) The appellant. (2) The respondent. (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File

BY ORDER,

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