OM PRAKASH KHANDELWAL,JAIPUR vs. INCOME TAX OFFICER , WARD-4(1), JAIPUR

ITA 887/JPR/2025Status: DisposedITAT Jaipur06 August 2025AY 2022-2023Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR, JM आयकर अपील सं. / ITA No. 887/JPR/2025 निर्धारण वर्ष / Assessment Year : 2022-2023 बनाम Vs. | | | |:---|:---| | OM Prakash Khandelwal | Income Tax Officer, Ward-4(1), Jaipur. | | 7, Ekta Marg, Path No. -07, vijay Bari, Dher Ke Balaji, Sikar Road, Jaipur. | | | स्थायीलेखा सं./ जीआईआर सं./PAN/GIR No.: ADHPK9109L | | | अपीलार्थी / Appellant | प्रत्यर्थी / Respondent | निधर्धारिती की ओर से / Assessee by: Sh. Mukesh Goyal,4 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CBDT Notification dated 24.05.2023, which raised the exemption limit for leave encashment to Rs. 25 lakhs for non-government employees with retrospective effect, should be applied to the assessee's case. Consequently, the assessment order and the CIT(A)'s impugned order were set aside.

What were the facts?

The assessee, a retired employee, received Rs. 15,16,271 as leave encashment. CPC, Bengaluru, allowed an exemption of only Rs. 3,00,000 under Section 10(10AA)(2) of the Act, creating a demand for the balance amount. The assessee challenged this intimation before the CIT(A), who upheld the intimation.

What were the issues?

Whether the enhanced exemption limit for leave encashment for non-government employees, as per CBDT Notification dated 24.05.2023, applies retrospectively to the assessee's case, allowing a higher exemption than initially granted.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 10(10AA)(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES,”A-Bench” JAIPUR

Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 887/JPR/2025

Hearing: 06/08/2025Pronounced: 06/08/2025

PER: Narinder Kumar, Judicial Member

Appellant-assessee is a retired employee. During the year under consideration, he received a sum of Rs. 15,16,271/-, towards leave encashment. CPC, Bangaluru issued intimation u/s 143(1) of the Act, on 31.01.2023, allowing exemption only to the extent of Rs. 3,00,000/-, u/s 10(10AA)(2) of the Act. Since the assessee felt aggrieved by disallow

The order continues below.

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