1986 (6) TMI 67 - AT - Income Tax

Summary

The appeal was about whether leave encashment upon resignation is exempt under section 10(10AA) of the IT Act. The Appellate Tribunal held that resignation does not qualify as retirement under the section, and therefore, the leave encashment is not exempt from taxation. The Tribunal allowed the departmental appeal, setting aside the order of the AAC and restoring that of the ITO.