UMA DUTT SHARMA,MUMBAI vs. INCOME TAX OFFICER, WARD 2(1)(1), KANPUR, KANPUR

2019-20 against impugned appellate order dated 08/02/2023 (DIN & Order No.ITBA/NFAC/S/250/2022- 23/1049551618(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].

(B) This appeal has been filed by the assessee, beyond time limit prescribed under section 253(3) of IT Act. The assessee has submitted application, duly supported by affidavit, for condonation of delay in filing of the appeal pleading that the delay was unintentional and beyond the control of the assessee and has requested to admit the appeal for hearing. The learned Sr. Departmental Representative for Revenue did not express any objection to assessee’s application for condonation of delay in filing of the appeal. In view of the foregoing, and in specific facts and circumstances of the present appeal before us, the delay in filing of this appeal is condoned; and the appeal is admitted for hearing.

(C) The facts of the case, in brief, are that the assessee retired from service of State Bank of India in financial year 2018-19 and received Rs.9,04,635/- as leave encashment. The assessee filed his return of income on 23/07/2019 and claimed the whole amount i.e. Rs.9,04,635/- under section 10(10AA)(ii) of the Act as exempt. While processing the return filed by the assessee, the Assessing Officer restricted the same to Rs.3,00,000/- and disallowed remaining amount of Rs.6,04,635/-. Being aggrieved, the assessee carried the matter in appeal before the learned CIT(A). Vide impugned appellate order dated 08/02/2023, the learned CIT(A) has dismissed the assessee’s appeal. Now the assessee is in appeal before the Income Tax Appellate Tribunal.

(D) During the course of hearing before the Tribunal, learned A.R. for the assessee submitted that CBDT has issued Notification No.31/2023/F/ No.200/3/2023-ITA-I dated 24th May, 2023 whereby the benefit in terms of section 10(10AA)(i) &(ii) has been extended to non government employees, by raising the limit to Rs.25 lakhs and that too with retrospective effect. Learned A.R. for the assessee also submitted that learned CIT(A) has erred in not following the said notification dated 24/05/2023 of CBDT with retrospective effect. He submitted that the matter regarding assessee’s claim under section 10(10AA) of the Act may be restored back to the file of the Assessing Officer with the direction to pass fresh order on this specific issue, giving due consideration to the aforesaid CBDT Notification dated 24th May 2023; and after providing reasonable opportunity to the assessee.