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ITAT Chennai Grants ₹25 Lakh Leave Encashment Exemption for Retired Bank Employee

TaxGuru
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Summary

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  • The ITAT Chennai has allowed a retired Bank of Baroda employee to claim an enhanced leave encashment exemption of ₹25 lakh, overturning previous restrictions.
  • The Tribunal condoned a delay of 1,221 days in filing the appeal, citing substantial justice and the personal hardships faced by the assessee.
  • This decision follows CBDT Notification No.31/2023, which raised the exemption limit for non-government employees from ₹3 lakh to ₹25 lakh effective April 1, 2023.
  • The ruling could set a precedent for similar cases, highlighting the Tribunal's commitment to equity and fairness in tax matters.

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