MOHAN SINGH RAJAWAT,JAIPUR vs. ITO WD 7(1),, JAIPUR

ITA 228/JPR/2026Status: DisposedITAT Jaipur21 October 2026AY 2020-219 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal condoned the delay of 1,160 days, finding sufficient cause based on the assessee's bona fide belief, the tax practitioner's affidavit, and medical circumstances, citing the justice-oriented interpretation of 'sufficient cause' from Collector, Land Acquisition, Anantnag v. Mst. Katiji. On merits, the Tribunal held that the enhanced exemption limit of Rs.25,00,000/- introduced by CBDT Notification No.31/2023 dated 24.05.2023 is applicable to the assessee's claim for Assessment Year 2020-21. The Tribunal respectfully agreed with the decisions of coordinate benches, including Renu Moongia, which allowed the benefit of the enhanced limit. The reasoning was that CBDT circulars, if beneficial, can mitigate the rigors of the law, and the enhanced limit was below the assessee's claim. The ratio decidendi is that an enhanced exemption limit notified by the CBDT, even if issued after the relevant assessment year, can be applied if it is beneficial to the assessee and is supported by judicial precedents of coordinate benches. The Assessing Officer was directed to allow the assessee's claim for exemption of Rs.9,92,880/- under Section 10(10AA).

What were the facts?

The assessee, Mohan Singh Rajawat, filed his return of income for Assessment Year 2020-21 on 08.12.2020, claiming Rs.9,92,880/- as exempt leave encashment under Section 10(10AA). The CPC processed the return under Section 143(1) and restricted the exemption to Rs.3,00,000/-, making an adjustment of Rs.6,92,880/-. The assessee's appeal to the CIT(A) was dismissed, upholding the CPC's action. The assessee's appeal to the ITAT was filed with a delay of 1,160 days, which was condoned by the Tribunal. The dispute concerns the applicability of an enhanced exemption limit for leave encashment.

What were the issues?

1. Whether the delay of 1,160 days in filing the appeal is liable to be condoned under Section 10(10AA) of the Income-tax Act, 1961. 2. Whether the enhanced exemption limit of Rs.25,00,000/- prescribed by CBDT Notification No.31/2023 dated 24.05.2023 is applicable to the leave encashment received by the assessee during Assessment Year 2020-21. Assessee's Contentions: - The delay was due to a bona fide belief that the appeal was filed by a tax practitioner, coupled with health issues, and supported by an affidavit and medical documents. - The enhanced exemption limit of Rs.25,00,000/- notified on 24.05.2023 should apply retrospectively to the Assessment Year 2020-21. Relied on decisions of coordinate benches in Ram Charan Gupta, Govardhan Deepchand Bhambhani, and Renu Moongia. Revenue's Contentions: - The judgment records no specific contentions for the revenue on the merits of the appeal, other than the fact that the CIT(A) upheld the adjustment made by the CPC based on the then-existing limit.

Which sections of the Income-tax Act were involved?

Section 10(10AA),Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, “SMC” BENCH, JAIPUR

Hearing: 14.10.2026Pronounced: 21.10.2026

Per Shri Om Prakash Kant, AM :-

This appeal by the assessee is directed against the order dated 19.09.2022 passed by the learned National Faceless Appeal Centre, Delhi [hereinafter referred to as “the learned CIT(A)”] for Assessment Year 2020-21. The dispute in the present appeal concerns the restriction of exemption under section 10(10AA) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) in respect of leave

2 Asst. Year: 2020-21 encashment received on retirement to Rs.3,00,000/-, as against the assessee’s claim of Rs.9,92,880/-.

Condonation of Delay

2.

At the outset, the Registry has pointed out that the appeal is barred by limitation by 1,160 days. The assessee, appearing

The order continues below.

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