ITAT Surat ruling: Retired employee wins leave encashment tax dispute over ₹8.02 lakh exemption claim
Mint ·
The ruling highlights the importance of following due process before the tax authorities modify an already processed income tax return
Rs 8.02 lakh leave encashment tax exemption denied: Retired employee wins case in ITAT Surat
The ruling highlights the importance of following due process before the tax authorities modify an already processed income tax return
2 sources · 2 articles · updated 2026-11-07 11:08 UTC · business
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Rs 8.02 lakh leave encashment tax exemption denied: Retired employee wins case in ITAT Surat
The Economic Times ·
Retiree Mr. Patel from Bharuch, Gujarat, sought a complete tax exemption on Rs 8.02 lakh of leave encashment. Initially, his company certified only Rs 3 lakh as exempt. The Income Tax Department later imposed tax on an additional Rs 5.02 lakh. To challenge this ruling, Patel approached the Income Tax Appellate Tribunal in Surat, which sided with him, citing the Department's failure to provide justifiable reasons.