ANIL KUMAR PRUTHI,HISAR vs. ITO, WARD-1, HISAR

ITA 691/DEL/2023Status: DisposedITAT Delhi19 December 2024AY 2013-14Bench: SHRI MAHAVIR SINGH (Vice President), SHRI S. RIFAUR RAHMAN (Accountant Member)10 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee was an employee holding a civil post under a 'State' (CCSHAU, Hissar, being a State University). Therefore, he was entitled to full exemption for leave encashment under section 10(10AA)(i), following precedents for gratuity under section 10(10)(i). The Tribunal found the non-allowance of this exemption to be a legal mistake apparent from the record, allowing rectification under section 154, and set aside the orders of lower authorities.

What were the facts?

The assessee, Anil Kumar Pruthi, received Rs.13,81,050/- as leave encashment upon retirement for AY 2012-13. Initially, he claimed an exemption of Rs.3,00,000/-, including the balance in his taxable income. Later, realizing he might be eligible for full exemption under section 10(10AA)(i) as a 'civil post holder under a State', he filed a rectification application u/s 154 which was rejected by the AO and subsequently dismissed by the CIT(A).

What were the issues?

Whether the assessee was entitled to full exemption for leave encashment under Section 10(10AA)(i) as an employee holding a civil post under a State; and whether the disallowance of such exemption constituted a mistake apparent from record, rectifiable under Section 154 of the Act.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 154,Section 133(5),Section 10(10),Section 10(10)(i),Section 10(10)(iii),Section 10(10AA),Section 10(10AA)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’: NEW DELHI

Before: SHRI MAHAVIR SINGH & SHRI S. RIFAUR RAHMAN

For Appellant: Shri Lalit Mohan, CA and Ms. Monika Agarwal, Adv
For Respondent: Shri Rajesh Mahajan, Sr. DR
Hearing: 19/12/2024Pronounced: 19/12/2024

PER BENCH: This appeal by Assessee is arising out of the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in appeal No. NFAC/2012-13/10027112 vide order dated 04/02/2023. The return of income was processed u/s 143(1) of the Act (herein after referred to as ‘the Act’) by CPC, Bengaluru.

Subsequently, the assessee filed rectification application u/s 154 of the Act dated 13/11/2016, which was 2 Anil Kumar Pruthi vs. ITO rejected by, ITO, Ward-1, Hissar vide order dated 03/11/2020 for Asst. Year 2013-14. 2. Brief facts of the case are that the assessee filed his return of income for the relevant Asst. Year 2012-13 declaring total income at Rs.23,50,130/- o

The order continues below.

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