PUZHAKKAL RAPPAI JOJO,THRISSUR V. ITO,WARD 1(1), THRISSUR

ITA 934/COCH/2024

AI Insights

The case involves Sri.Puzhakkal Rappai Jojo, an individual deriving income from salary, who appealed against the order of the National Faceless Assessment Centre / Commissioner of Income-tax (Appeals) regarding the assessment year 2022-2023. The primary contention was the exemption claim under section 10(10AA) of the Income-tax Act, 1961, which was initially claimed as Rs.57,57,439 but was adjusted to Rs.9,93,440 by the Assessing Officer due to the assessee's non-eligibility as a government employee. The CIT(A) upheld this adjustment, leading to the present appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 33560 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Other Referred Cases: Purnendu Shekhar Sinha v. Union of India (2024) 159 taxmann.com 746 (Patna)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL; SENIOR
• Keywords: Salary income

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member ITA No.934/Coch/2024 : Asst.Year 2022-2023 Sri.Puzhakkal Rappai Jojo Thusharam, Oneway Market Road, Irinjalakuda Thrissur – 680 121. PAN : ACFPJ5416J. v. The Income Tax Officer Ward 1(1) Thrissur. (Appellant) (Respondent) Appellant by : --- None--- Respondent by : Smt.Leena Lal, Senior AR Date of Hearing : 04.02.2025 Date of Pronouncement : 11.02.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Assessment Centre / Commissioner of Income- tax (Appeals) [“CIT(A)” for short] dated 20.09.2024 having DIN & Order No.ITBA/APL/S/250/2024-25/1068887775(1) for the assessment year 2022-2023. 2. Briefly, the facts of the case are that the assessee is an individual deriving income from salary. The return of income for the assessment year 2022-2023 was filed on 27th July, 2022 claiming exemption u/s.10(10AA) of the Income-tax Act, 1961 (“the Act” hereinafter) of Rs.57,57,439. The said return of income was processed u/s.143(1) of the Act vide intimation dated 16th March, 2023 after making adjustment of disallowance of claim of exemption of leave encashment of ITA No.934/Coch/2024. Sri.Puzhakkal Rappai Jojo. 2 Rs.9,93,440, since the assessee is neither a Central Government employee or a State Government employee. 3. Being aggrieved with the order of the Assessing Officer (“the AO” hereinafter) against the said adjustment, an appeal was filed before the CIT(A), who vide the impugned order, confirmed the action of the AO. 4. Being aggrieved with the order of the CIT(A), the assessee is appeal before me in the present appeal. The learned Senior DR placed reliance on the judgment of the Hon’ble Patna High Court in the case of Purnendu Shekhar Sinha v. Union of India (2024) 159 taxmann.com 746 (Patna). When the appeal was called, none appeared on behalf of the assessee, despite due service of notice. Therefore, I proceed to dispose of this appeal on merits after hearing the learned Senior DR. 5. I have heard the learned Senior DR and perused the material available on record. The issue in the present appeal is with regard to the quantum of deduction of leave encashment u/s.10(10AA) of the Act. Undisputedly, the assessee is neither a Central Government nor a State Government employee. Therefore, the amount received towards encashment of leave is exempt to the extent of Rs.3,00,000 as notified by the CBDT. In my opinion, the AO rightly restricted the amount of deduction to the extent of Rs.3 lakh and the CIT(A) justified in upholding the view taken by the AO. Therefore, I do not find any reason to interfere with the orders of the lower authorities. ITA No.934/Coch/2024. Sri.Puzhakkal Rappai Jojo. 3 6. In the result, the appeal filed by the assessee is dismissed. Order pronounced on this 11th day of February, 2025. Sd/- (Inturi Rama Rao) ACCOUNTANT MEMBER Cochin; Dated : 11th February, 2025. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin "