Gauri Shankar Gupta vs. Income Tax Officer, Jaipur

Parties Involved

Facts Summary

The assessee, Gauri Shankar Gupta, retired from the service of the State Bank of India and filed his return of income on 14.08.2020, declaring a total income of Rs 6,76,390. He claimed an exemption of Rs 9,29,033 under section 10(10AA) of the Income Tax Act, 1961, in respect of the cash equivalent of leave salary received on retirement. While processing the return under section 143(1) of the Act, the Assessing Officer (AO) restricted the exemption to Rs 3,00,000, adding the balance of Rs 6,29,033 and determining the total income at Rs 13,05,430. The Commissioner of Income Tax (Appeals) upheld the adjustment, concluding that the assessee was not entitled to the full exemption as he was not a government employee. The assessee appealed against this order, arguing that the limit of Rs 3,00,000 specified by Notification No. S.O. 588(E) dated 31.05.2002 was outdated and that the limit of Rs 25,00,000 specified by Notification No. S.O. 2276(E) dated 24.05.2023 should be applied.…

Legal Issues

• 1. Whether the exemption under sub-clause (ii) of clause (10AA) of section 10 of the Act can be confined to Rs 3,00,000 notwithstanding the limit of Rs 25,00,000 specified by Notification No. S.O. 2276(E) dated 24.05.2023.
• 2. Whether the assessee is entitled to the exemption of Rs 9,29,033 under section 10(10AA) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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