PRAMOD KUMAR TAYAL,MEERUT vs. DCIT, CIRCLE 1(1)(1) MEERUT, MEERUT

It emerges during the course of hearing with the able assistance coming from both the parties that the learned CIT(A)/NFAC has refused to condone delay of 1333 days in filing of the assessee’s lower appeal instituted on 23.08.2025 against the Assessing Officer’s assessment framed on 29.11.2021, thereby holding that the same had not been explained in light of the justifiable reasons.

That being the case, I hereby quote Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC), settling the issue long back that all such technical aspects must make way for the cause of substantial justice. Accordingly, the delay caused in filing the appeal before the CIT(A)/NFAC is condoned.

Next comes the issue of claim of leave encashment by the assessee wherein the learned lower authorities have restricted his section 10(10AA) leave encashment claim of Rs.8,20,020/- to Rs.3 lakhs only, in the course of section 143(1) intimation dated 29.11.2021 and upheld in the lower appellate discussion. It is in this factual backdrop that the assessee’s first and foremost argument before us is such a course of action disallowing section 10(10AA) leave encashment exemption is nowhere permissible in an instance involving section 143(1)(a)(i) & (ii) of the Act. A perusal of the above statutory provision indicates that the same gets

The Revenue vehemently argues that the assessee’s case would be covered under section 143(1)(a)(ii) since it is apparently incorrect claim for leave encashment under section 10(10AA) of the Act. The assessee’s return has nowhere declared any such information, which could be treated as an apparently incorrect one attracting disallowance under Section 10(10AA) in processing itself. I thus reverse the learned lower authorities’ impugned action rejecting the assessee’s section 10(10AA) leave encashment exemption claimed in above terms. Necessary computation shall follow as per law.