JAGDISH CHANDRA CHATURVEDI,KASGANJ vs. THE ASSESSING OFFICER WARD 4(3)(3), KASGANJ , KASGANJ

This assessee’s appeal for assessment year 2022-23, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1067296783(1) dated 05.08.2024 involving proceedings under section 154 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties. Case file perused.

It emerges during the course of hearing that both the learned lower authorities have restricted the assessee’s section 10(10AA) leave encashment claim of Rs.13,55,054/- to Rs.3 lakhs only, in the course of section 143(1) intimation dated 01.02.2023 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 attracted in a case of an arithmetical error apparent from incorrect claim and information in the return disallowance of loss, disallowance of expenditure, disallowance of deduction and addition of income as per Form 26AS etc. than the issue before us involving the interpretation of the “State” Government as to whether it includes the assessee’s employer or not.

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 2 | P a g e information, which could be treated as an apparently incorrect one attracting disallowance under Section 10(10AA) in processing itself. We 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.

This assessee’s appeal is allowed. Order pronounced in the open court on 7th February, 2025 Sd/- Sd/- (M. BALAGANESH) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 7th February, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra