HEMANT GOSWAMI,GWALIOR vs. ITO WARD 2(1) GWALIOR, GWALIOR

ITA 426/AGR/2026Status: DisposedITAT Agra22 October 2026AY 2022-2314 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee is entitled to the further exemption of Rs. 7,56,590/- under Section 10(10AA)(ii) of the Act, in addition to the Rs. 3,00,000/- already allowed. The reasoning was based on various coordinate bench decisions of the Tribunal (Ahmedabad, Jaipur, Pune) which have held that the limit for leave encashment exemption has been increased from Rs. 3 lakh to Rs. 25 lakh, as per notification No. 31/2023 issued by the Ministry of Finance. The Tribunal found support from the ITAT Ahmedabad decision in Mr. Goverdhan Bhambhani and the ITAT Pune decision in Devendra Kumar Gupta. The ratio decidendi is that the increased exemption limit for leave encashment is applicable and should be granted to the assessee. The Tribunal set aside the findings of the CIT(A) and directed the assessee to place a revised computation of income before the jurisdictional Assessing Officer for claiming the further exemption, after which the Revenue authorities are to compute the tax liability and grant any refund due. No issue was expressly left undecided.

What were the facts?

The assessee, Hemant Goswami, a retiree from State Bank of India, received retiral benefits including leave encashment of Rs. 10,56,590/- for Assessment Year 2022-23. He claimed an exemption of Rs. 3,00,000/- under Section 10(10AA)(ii) of the Income Tax Act, 1961, in his return. The Central Processing Centre (CPC) processed the return without adjusting the remaining Rs. 7,56,590/-. The assessee appealed to the Additional/Joint CIT (Appeals), Kochi, seeking exemption for the balance amount, arguing he was legally entitled to it based on various Tribunal decisions. The CIT(A) dismissed the appeal, noting that the return was processed at Rs. 15,93,800/- as admitted by the assessee, with Rs. 23,00,000/- claimed as exempt income under Section 10, and found no mistake in the intimation order.

What were the issues?

1. Whether the assessee is entitled to claim an additional exemption of Rs. 7,56,590/- on account of leave encashment under Section 10(10AA)(ii) of the Income Tax Act, 1961, beyond the Rs. 3,00,000/- already claimed, by raising a fresh claim before the appellate authorities? Assessee's Contention: The assessee argued that he is legally entitled to the further exemption of Rs. 7,56,590/- as part of his leave encashment. He relied on Supreme Court and High Court decisions (Geotez (India) Ltd. Vs CIT, CIT Vs Pruthvi Brokers & Share Holder Pvt Ltd) and Tribunal rulings (Shri Vijay Kumar Jain Vs ITO) which permit raising additional claims before appellate authorities to determine correct tax. He also submitted that the revised limit for leave encashment exemption has increased significantly. Revenue's Contention: The Revenue, through the Sr. DR, supported the order of the CIT(A), who had held that the intimation under Section 143(1) was correct and no mistake was found. The CIT(A) noted that the assessee had verified the return and had the option to file a revised return or seek condonation for delay if any omission was discovered.

Which sections of the Income-tax Act were involved?

Section 10(10AA)(ii),Section 250,Section 10(10B),Section 10(10C)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA(SMC

Before: SUNIL KUMAR SINGHBRAJESH KUMAR SINGH

For Appellant: Shri Rajesh Kumar Bansal, Adv
Hearing: 06.08.2026Pronounced: 22.10.2026

PER:BRAJESH KUMAR SINGH, A.M. This appeal is directed against the impugned order dated 12.05.2026 passed in appeal No ADDL/JCIT (A) KOCHI/10048/2021-22 by the Addl/Jcit (A) Kochi (hereinafter referred to as the Commissioner of Income Tax), u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for the A.Y. 2022-23, wherein ld. CIT (A) wherein the ld. CIT(Appeals) has dismissed assessee’s first appeal.

2.

Brief facts of the case: The appellant/assessee, a retiree from State Bank of India, received retiral benefits in addition to other funds, the leave encashment of Rs.10,56,590/- and claimed exemption of Rs. 3,00,000/- u/s 10 (10AA)(ii) in the Income-tax Return submitte

The order continues below.

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