VINESH KUMAR SINGH,BHOPAL vs. CIT(APPEAL) NFAC, DELHI

आदेश/O R D E R

Per Manish Borad, A.M.:

“1. That the learned lower authorities have erred in not appreciating the fact that 83 days Leave earned during the period when appellant was employed with the Government of India under the Department of Telecommunication (DOT) should be treated as exempt u/s 10(10AA)(i), even when documentary evidences and case law was produced and explained.” Page 1 of 5

Shri Vinesh Kumar Singh, Bhopal vs. CIT NFAC,Bhopal Assessment year 2020-21 2. - - - - - - - - -

to Bharat Sanchar Nigam Limited (BSNL). She submitted that since

07.03.1994, the assessee is a Central Government employee. As on 1.10.2000, 83 days of earned leave was to his credit, which were transferred in his leave account maintained with BSNL. On retirement, the accumulated 300 days of leave was encashed and sum of Rs. 13,48,770/- was received. So far as earned leave accumulated during the employment with BSNL, exemption u/s 10(10AA)(i) was allowed, but for leave encashment received for 83 days of earned leave accrued to the assessee during the employment with Department of Telecommunication, exemption u/s 10(10AA)(i) was denied. She stated that the assessee is a Government employee since 07.03.1994 and under similar set of facts and circumstances Coordinate Bench of Mumbai in the case of Babulal Patel,

Mumbai vs. ITO, Wd. 34(1)(2), Mumbai in I.T.A.No. 3261/Mum/2018 dated

05.02.2019 as well as Coordinate Bench Ahmedabad in the case of Pradipkumar Bhogilal Modi vs. ADIT (CPC) I.T.A.No. 83/Ahd/2023 dated

Shri Vinesh Kumar Singh, Bhopal vs. CIT NFAC,Bhopal Assessment year 2020-21 19.07.2023 has laid down the ratio which is squarely applicable to the facts of the instant case and in the line thereof, the assessee is entitled to exemption u/s 10(10AA)(i) for leave encashment of alleged 83 days of Earned Leave to his credit.

per the Government’s decision and Union Cabinet approval on 25.09.2000, the assessee was permanently absorbed into BSNL w.e.f.1.10.2000. The assessee was having 83 days earned leave to his credit at the time of joining the BSNL. Ld. AO allowed the claim of exemption for 217 days of E.L. credited to employee leave account during his service with BSNL but denied the claim for 83 days of E.L. credited during his service with Department of Telecommunication.

Shri Vinesh Kumar Singh, Bhopal vs. CIT NFAC,Bhopal Assessment year 2020-21 of the Act for the eared leave credited in the employee’s account, from the previous employer which too was under the Central Government. Relevant findings of the Tribunal reads as follow :-

“7. Heard both the parties and perused all the relevant material available on record. The assessee was absorbed in the Department of Telecommunication in respect of BSNL vide Presidential Order dated 23.09.2019 which has given the permanent absorption effective from 01.10.2000. The assessee was initially appointed on 28.11.1983 in the Department of Indian Post and Telegraphs and therefore, he was initially appointed in the Central Government which was affirmed in the certificate from the Accounts Officer of BSNL on 18.01.2023 that the leave encashment for 300 earned leave was of Department of Telecommunication originally that of Indian Post and Telegraph Department and, therefore, the same cannot be treated as a PSU and the assessee is entitled for exemption u/s 10(10AA)(i) of the Act. In fact, in Para 4.3 of the CIT’s order the decision of the Tribunal, Mumbai Bench in case of Babulal Patel has been quoted but the same was not at all considered. Therefore, the appeal of the assessee is allowed.”

Shri Vinesh Kumar Singh, Bhopal vs. CIT NFAC,Bhopal Assessment year 2020-21 8. Ground no. 2 is of general nature, which needs no adjudication. 9. In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 04.01.2024.