VALLOLI SHEELA,PALAKKAD V. ITO,WARD 2, PALAKKAD

ITA 1047/COCH/2024

AI Insights

Valloli Sheela, the appellant, contested the restrictions imposed on her claimed exemptions under sections 10(10) and 10(10AA) of the Income Tax Act, 1961, for the Assessment Year 2022-23. The initial return filed was processed, and the exemptions were adjusted, leading to a reduced claim which Sheela appealed against at the CIT(A). The CIT(A) upheld the adjustments made by the Central Processing Centre (CPC). Subsequently, Sheela appealed to the Income Tax Appellate Tribunal, Cochin Bench. The Tribunal dismissed her appeal, agreeing with the CPC's decision, citing that employees of the Life Insurance Corporation are not considered central government employees, and thus, the exemptions claimed were incorrectly applied.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474716 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Other Referred Cases: National Dairy Research Institute v. ACIT [2018] 171 ITD 271 (Bang. Trib.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: PATHMANATHAN
• Keywords: Condonation of delay
• Section: 143(1); 10(10AA)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 1047/Coch/2024 Assessment Year: 2022-23 Valloli Sheela .......... Appellant 4/763, Navami Velloli Lane Puthur, Palakkad 678001 [PAN: AJZPS6681D] vs. The Income Tax Officer, Ward - 2, Palakkad .......... Respondent t Appellant by: Shri Pathmanathan, Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 12.03.2025 Date of Pronouncement: 27.03.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 21.11.2023 for Assessment Year (AY) 2022-23. 2. Brief facts of the case are that the appellant is an individual deriving income under the head ‘salary’. The return of income for AY 2022-23 was filed on 24.07.2022. The said return of income was processed u/s. 143(1) of the Income Tax Act, 1961 (the Act) vide intimation dated 08.03.2023 after restricting the exemption claimed u/s. 10(10) of the Act to Rs. 46,89,834/- as against the claim of Rs. 56,49,495/-. While doing so, the exemption u/s. 10(10AA) in respect of 2 ITA No. 1047/Coch/2024 Valloli Sheela encashment of earned leave was restricted to Rs. 2,00,000/- as against the total claim of Rs. 12,59,661/-. 3. Being aggrieved by the above intimation an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the CPC. 4. Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal. 5. At the outset I find that there is a delay in filing the present appeal by 332 days. The appellant had filed a petition seeking condonation of delay on the ground of illness and was advised complete rest by the Doctor. It is further submitted that since there is strong merits, the delay may be condoned and in support of this the appellant had also filed certificate from the Doctor. Having perused the averments made in the petition and the medical certificate, I am of the considered opinion that it is a fit case to condone the delay. Accordingly the delay is condoned and the appeal is admitted for adjudication. 6. The employees of the Life Insurance Corporation cannot be considered as central government employees. The Life Insurance Corporation instrumentality of the state for limited purpose of Article 12 of the Constitution of India. Reference can be made the decision of the TAT, Bangalore Bench in the case of National Dairy Research Institute v. ACIT [2018] 171 ITD 271 (Bang. Trib.). Therefore, the CPC had rightly restricted the exemption u/s. 10(10) of the Act as it amounts to incorrect claim. Therefore, I do not find any merit in the appeal filed by the assessee. 3 ITA No. 1047/Coch/2024 Valloli Sheela 7. In the result, the appeal filed by the assessee sands dismissed. 8. Order pronounced in the open court on 27th March, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 27th March, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin "