ITAT Surat backs retiree in Rs 8.02 lakh leave encashment case
In short
The Income Tax Appellate Tribunal in Surat ruled for retiree Mr. Patel from Bharuch, Gujarat, in a case over Rs 8.02 lakh of leave encashment.
His company had treated only Rs 3 lakh as tax-free, and the tax department added tax on Rs 5.02 lakh more. The tribunal sided with Patel.
What the reporting says
The Income Tax Appellate Tribunal in Surat ruled in favour of retiree Mr. Patel from Bharuch, Gujarat, over tax treatment of Rs 8.02 lakh leave encashment. Patel had sought full exemption, while his company certified only Rs 3 lakh as exempt and the Income Tax Department taxed an extra Rs 5.02 lakh. The tribunal sided with Patel, citing the department’s failure to give justifiable reasons.
Why it matters
The Surat bench of the Income Tax Appellate Tribunal decided a leave-encashment tax dispute involving Mr. Patel of Bharuch, Gujarat. The company had certified Rs 3 lakh as exempt, while the tax department taxed an additional Rs 5.02 lakh.