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2019 (12) TMI 1224 - AT - Income TaxExemption on account of Gratuity and leave encashment u/s 10(10)(i) and 10(10AA)(i) - HELD THAT:- Assessee was an employee of Chaudhary Charan Singh Haryana Agricultural University, Hisar, a State University, established under ‘The Haryana and Punjab Agricultural Universities Act, 1970’ and notified under University Grants Commission. The Tribunal in case of Ram Kanwar Rana [2016 (6) TMI 687 - ITAT DELHI] held that the exemption u/s 10(10)(i) and 10(10AA)(i) are available to the assessee in respect of the arrears of gratuity and dismissed the grounds about the initiation of the re-assessment. Similar view has been taken in several decisions including Raghubir Singh Panghal vs. ITO [2016 (6) TMI 1163 - ITAT DELHI] . As in the present case also the assessee is found to be an employee holding a civil post under a State, therefore, the provisions of Section 10(10)(i) of the Act are attracted in this case and the assessee is entitled to exemption in respect of gratuity amount received in total upto ₹ 10 lac which covers a sum of ₹ 6,50,000/- received during the year. As regards the arrears of leave encashment, it is also on the same footing to that of exemption claimed under Section 10(10)(i). Therefore, the assessee is entitled for the exemption claimed under Section 10(10)(i) and 10(10AA)(i) of the Act. The CIT(A) as well as the Assessing Officer was not right in disallowing the same - Decided in favour of assessee.
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