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2023 (7) TMI 1328 - ITAT AHMEDABADLeave encashment u/s. 10(10AA) - D.R. submitted that the organization that is BSNL is a Public Sector Unit and therefore, the same is not exempted in respect of leave encashment - HELD THAT:- 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 under Section 10(10AA). CIT(A) as well as the Assessing Officer has not taken cognizance of these facts and wrongly denied the benefit of exemption of leave encashment under Section 10(10AA) of the Act. In fact, in Para 4.3 of the CIT-A’s order the decision of the Tribunal, Mumbai Bench in case of Babulal Patel [2019 (2) TMI 2069 - ITAT MUMBAI] has been quoted but the same was not at all considered. Therefore, the appeal of the assessee is allowed.
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