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Facts
The assessee, a superannuated J&K government employee, claimed full exemption of Rs. 11,00,100/- under Section 10(10AA) of the Income Tax Act for AY 2020-21, identifying as a State government pensioner. The Assessing Officer, however, allowed only Rs. 3,00,000/-, classifying him under a different category, and the CIT(A) dismissed the appeal based on a rectification order under Section 154 without fully addressing all contentions.
Held
The Tribunal noted that the CIT(A) had not adjudicated all issues raised by the assessee, despite the rectification order. Therefore, to ensure a complete and fair hearing on merits, the case was remanded back to the CIT(A) for fresh adjudication, with proper opportunity given to the assessee.
Key Issues
Eligibility of a State government pensioner for full exemption under Section 10(10AA) of the Income Tax Act, and whether the CIT(A) properly adjudicated all grounds of appeal after a rectification order.
Sections Cited
10(10AA), 154
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘DIVISION BENCH’, AMRITSAR
Before: SHRI UDAYAN DAS GUPTA & SHRI KRINWANT SAHAY
( Hybrid Hearing ) निर्धाररती की ओर से/Assessee by : None ( Written Submissions) रधजस्व की ओर से/ Revenue by : Sh. Manpreet Singh Duggal, Sr.DR सुिवधई की तधरीख/Date of Hearing : 18.03.2025 उदघोर्णध की तधरीख/Date of Pronouncement : 16.06.2025 आदेश/Order Per Krinwant Sahay, AM: Captioned appeals have been filed by the Assessee against the order dated 08.08.2024 passed by Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (NFAC) for A.Y. 2020-21.
2. The only ground raised by the Assessee in is as under:-
556 & 572-Asr-2024 Himat Kumar, Udhampur 2 The impugned order has not been passed after taking into consideration all facts and circumstances of the case. The appellant do not agree with and counter all the finding contained in the impugned order, in so far as they are against the appellants. Hence, the impugned order is liable to be set aside.
Brief facts, as per written submissions of the Assessee, are as under: 1. That the Assessee is a government employee, resident at Village Kashirah Near Airforce Station, Udhampur- 182101.
That the appellant was a J&K government employee in the erstwhile state of Jammu and Kashmir till his superannuation until 31.08.2018.
3. That the appellant has filed his Income Tax Return vide Acknowledgement No. 553282820150920 dated 15.09.2020.
That the appellant had declared the income under section 10(10AA) of the Income Tax Act, 1961 during the AY 2020-21 to the tune of Rs. 11,00,100/-
5. The appellant being a government pensioner had erred in selecting the nature of employment as State government instead of State government (pensioner).
Therefore, the learned Assessing officer only allowed the exemption for the financial year 2019-20 period only for the period 3,00,000/- as is for individuals in service other than of State Government or Centre Government.
556 & 572-Asr-2024 Himat Kumar, Udhampur 3 7. But the appellant being in State government service is entitled to claim full exemption for the total amount of Rs. 11,00,100/- under section 10(10AA) of the Income Tax Act, 1961.
The ld. DR relied on the order of the ld. CIT(A).
6. None appeared on behalf of the Assessee. It is seen from the order of the ld. CIT(A) that he has dismissed the appeal of the Assessee on the basis that the Assessing Officer has passed a rectification order u/s 154 of the Income Tax Act, 1961 (in short 'the Act') but as per the written submissions filed by the Assessee, the Assessee still has a grievance that all the issues raised before the ld. CIT(A) have not been decided and adjudicated.
We have considered the submissions made by the Assessee and the order passed by the Ld. CIT(A). We have also considered the arguments made by the Ld. DR during the proceedings before us. In order to have a clear-cut adjudication on all the issues raised by the Assessee before the Ld. CIT(A), we are inclined to remand this case back to the file of the CIT(A) for fresh adjudication. Therefore, the case is remanded back to the file of the ld. CIT(A) for adjudication afresh on merits, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before
556 & 572-Asr-2024 Himat Kumar, Udhampur 4 the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly.