JAYARAM BHYRAVABHOTLA,NOIDA vs. ITO WARD 5(1)(3), NOIDA

PDF · subscribers
ITA 1222/DEL/2026Status: DisposedITAT Delhi26 May 2026AY 2019-209 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee is entitled to the leave encashment exemption. This was based on the fact that the employer is governed by rules framed by the Ministry of Education and a High Court ruling that employees governed by state or central service rules are eligible for the exemption.

What were the facts?

The assessee claimed leave encashment exemption under Section 10(10AA)(ii) for the assessment year 2019-20. The lower authorities denied this exemption, stating that the employer, Indian Institute of Technology, Delhi, was neither a state nor a central government entity.

What were the issues?

Whether an employee of the Indian Institute of Technology, Delhi, is eligible for leave encashment exemption under Section 10(10AA)(ii) when the employer is governed by Ministry of Education rules.

Which sections of the Income-tax Act were involved?

Section 10(10AA),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

Hearing: 18.05.2026Pronounced: 26.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘G’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 1222/Del/2026 Assessment Year: 2019-20 Vs. Income Tax Officer Jayaram Bhyravabhotla J-102, Amrapali Platinum, Ward-5(1)(3) Sector -119, Noida, Goutam Noida Budhnagar- 201302 Uttar Pradesh Uttar Pradesh PAN: AAFPB2569J (Appellant) (Respondent) Assessee by Sh. M. P. Rastogi, Adv. Department by Sh. Ravi Kant Choudhary, Sr. DR

Date of hearing 18.05.2026 Date of pronouncement 26.05.2026 ORDER PER SATBEER SINGH GODARA, JM This assessee’s appeal for assessment year 2019-20, arises against the Commissioner of Income Tax (Appeals), Addl/JCIT(A)- 1 [in short, the “CIT(A)”], Visakhapatnam’s DIN and order no. ITBA/APL/S/250/2025-26/1083901180(1), dated 19.12.2025 involving proceedings under section 154 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties. Case file perused.

2.

The assessee’s sole substantive ground canvassed in the instant appeal is directed against both the learned authorities’ respective section 154 rectification findings dated 09.05.2022 as upheld in the lower appellate discussion, holding him as not

ITA No.1222/Del/2026 entitled for section 10(10AA) (ii) leave encashment exemption for the sole reason that his employer i.e. Indian Institute of Technology, Delhi herein is neither state nor central Government; as the case may be. 3. Both the parties vehemently reiterate their respective stands against and in support of correctness of the learned lower authorities’ respective findings. The assessee; more particularly, invites the tribunal’s attention to his appointment letter /order at pages 1 to 4 in the paper book issued/accepted on 02.05.1990 with effect from 12.10.1990 that M/s Indian Institute of Technology is very well governed by the rules framed by the Ministry of Education (pages 5 to 6) which has gone unrebutted from the Revenue side. 4. This being the clinching factual position, we hereby quote 2022 448 ITR 318 (Madras) Dr. P Balasubramanian vs CCIT holding that such employees governed by the state or central Service Rules are very much entitled for the impugned leave encashment exemption; reading as under:

2 | P a g e

ITA No.1222/Del/2026

3 | P a g e

ITA No.1222/Del/2026

4 | P a g e

ITA No.1222/Del/2026

5 | P a g e

ITA No.1222/Del/2026

6 | P a g e

ITA No.1222/Del/2026

7 | P a g e

ITA No.1222/Del/2026

8 | P a g e

ITA No.1222/Del/2026

5.

We adopt the above extracted detailed discussion mutatis mutandis to accept the assessee’s instant sole substantive grievance claiming section 10(10AA) leave encashment exemption in very terms. Necessary computation shall follow as per law.

6.

This assessee’s appeal is allowed.

Order pronounced in the open court on 26.05.2026 .

Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 26.05.2026 Pooja Mittal/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

9 | P a g e

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 →