ASHOK CHANDRA SAXENA,LUCKNOW vs. DCIT / ACIT-1, LUCKNOW , LUCKNOW

ITA 298/LKW/2026Status: DisposedITAT Lucknow02 June 2026AY 2019-206 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CBDT notification increasing the leave encashment exemption limit to Rs. 25,00,000/- is retrospective in nature. Consequently, the assessee is eligible for the entire claimed exemption of Rs. 8,14,303/-.

What were the facts?

The assessee claimed exemption for leave encashment on retirement amounting to Rs. 8,14,303/-. The Assessing Officer restricted this exemption to Rs. 3,00,000/-, disallowing the excess. The assessee argued that a subsequent CBDT notification increasing the limit to Rs. 25,00,000/- should be applied retrospectively.

What were the issues?

Whether the CBDT notification enhancing the leave encashment exemption limit is retrospective and applicable to the assessment year in question.

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, LUCKNOW BENCH ‘SMC’, LUCKNOW

Before: SHRI ANADEE NATH MISSHRA

For Appellant: Shri Sunil Porwar, CA

PER ANADEE NATH MISSHRA:A.M.

(A) This appeal has been filed by the assessee against the impugned appellate order dated 11.11.2025, for the AY 2019-20. The assessee has raised the following grounds of appeal:

“1. Denial of leave encashment received on retirement exempt u/sec. 10(10AA)(ii) of Act of Rs. 8,14,303/- and restricted it to Rs. 300000/-.

2.

Even the CBDT Notification in S.O. 2276(E) [Notification No. 31/2023/F. No. 200/3/2023-1TA-1 dated 24.05.2023 enhancing maximum such limit to Rs. 2500000/- with Retrospective Effect has not been considered.”

(B) The present appeal has been filed beyond the time prescribed under section 253(3) of the Income Tax Act, 1961 (the Act). The assessee has filed Assessment

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 10(10AA)

All 498 judgments and leading authorities on Section 10(10AA) →

Recent GST High Court judgments

Search GST case law →