TMI Blog1985 (12) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of IT Act on leave encashment though the receipt was not on account of retirement." 2. The assessee having received Rs. 13,553 as leave encashment salary, claimed to be exempt under s. 10(10AA) of the IT Act, 1961, but the claim stood negatived at the assessment stage with the reasoning that leave encashment is exempt from tax if it is received at the time of retirement/super-annuation. The IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nches where it is claimed that the ITAT held that even in case where the assessee received leave encashment while in service, it was exempt from tax being capital receipt (details about the reliance of the orders of the ITAT is lacking in the order of the ld. AAC). 3. The revenue being aggrieved is in appeal and we have heard the parties at length. Sec. 10(10AA) of the IT Act provided that in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into play and exemption is warranted on facts and in law. The ground as also the appeal by the Revenue fails, but before parting, we like to say that the reliance of the Revenue on the decision of the Hon ble Karnataka High Court in Patil Vijay Kumar Ors. vs.Unionof India Anr. (1985) 48 CTR (Ker) 41 : (1985) 151 ITR 48 (Ker) is of no help to the Revenue, since the facts there were distinguisha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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