TMI Blog2023 (3) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided in favour of the assessee by observing as under: As per the provisions of section 10(10AA)(i) of the Act, the assessee is entitled for exemption on the amount of leave encashment of leave earned during the period before absorption in MTNL as per section 10(10AA)(i) of the Act as applicable to Central Govt. because before that date he was employee of Govt. of India that the Central Government. The amount of leave encashment in respect of leave accrued after absorption in MTNL will be governed by the exemption as per section 10(10AA)(ii) of the Act - facts are clearly in favour of assessee and for 263 days of leave as on the date of absorption was available to the assessee, which was earned and unutilized from Government service i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee against the order of the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi, dated 26/07/2022 arising in the matter of assessment order passed under s. 154 of the Income Tax Act, 1961 (here-in-after referred to as the Act ) relevant to the Assessment Year 2019-20. 2. The assessee has raised following grounds of appeal: 1. The learned CIT(A) has erred in law and facts in holding the order of AO u/s.154 restricting the exemption u/s.10(10AA)(i) to maximum Rs.3 Lakhs only on account of leave encashment as against Rs.7,31,440/- claimed by the assessee. 2. On the facts of the assessee read with letter dated 04-05-2012 issued form the Corporate Office Taxation Section(BSNL), full exemption claimed by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of section 10(10AA)(ii) of the Act. The learned CIT(A) in holding so also made reference to the judgment of Hon ble Delhi High court in case of Kamal Kumar Kalia others vs. Union of India others in W.P. No. 11846 of 2019 dated 08-11-2019. 6. Being aggrieved by the order of the learned CIT(A), the assessee is in appeal before me. 7. The learned AR before me submitted that assessee was originally the employee of central government under Department of Telecommunication. Subsequently, the Government of India (GOI), Department of Telecommunication vide order dated 07-01-2002 permanently put the employee (the assessee) into Bharat Sanchar Nigam Ltd (BSNL) a PSU w.e.f. 01-10-2000 in accordance with the provision of Rule 37-A of CCs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee by observing as under: 9. I have heard the rival contentions and gone through the facts and circumstances of the case. The admitted facts are that the assessee was originally appointed as Junior Engineer with Indian Post and Telegraph Department, Govt. of India w.e.f. 24.04.1980 and thereafter, in permanent capacity as Junior Engineer in the Department of Telecommunications, Govt. of India w.e.f 22.03.1983 vide order dated 22.06.1986. Subsequently, with effect from 01.10.2000 vide order dated 19.01.2004 issued by Department of Telecommunications, Ministry of Communication and IT, Govt. of India, in accordance with the provisions of Rule 37A of CCS(Pension) Rules, permanently absorbed in the Mahanagar Telephone Nigam Limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee and direct the AO to re-compute the exemption proportionately as directed above. 9.1 Before me, no material has been placed on record either by the Revenue to demonstrate that the decision of Tribunal as discussed above has been set aside/stayed or overruled by the Higher Judicial Authorities. Before me, no material was placed on record to point out any distinguishing feature in the facts of the case of the assessee and case mentioned above. Thus, respectfully following the order the Mumbai Tribunal as mentioned/discussed above, I hereby directed the AO to allow 100% exemption of leave encashment received on account of employment with Department of telecommunication i.e. Rs. 6,85,115/- under the provision of section 10(10 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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