Assessees had joined the then Maharashtra State Electricity Board (MSEB) in regular employment. All of them ended up retiring from the re-designated power companies constituted under the provisions of the Electricity Act, 2003.  The AO denied the exemption which is affirmed by the CIT(A). On appeal the Tribunal held that going by a conjoint reading of s. 131 r/w s. 133 of Electricity Act, 2003, the services of all officers and employees of the erstwhile MSEB first stood vested in the State Government of Maharashtra on Reorganization of the Board, followed by the transfer to various transferee entities engaged in generation, transmission and distribution of power. All these assessees had been assigned to their respective new employers after getting protection of their service conditions in the light of S. 133(2).These assessees have also undergone the very reorganization finally culminating in their respective superannuation. Not only these assessees have to be held entitled for exemption under S. 10(10A) and 10(10AA) as employees of MSEB, they are also eligible for the exemption in the newly set-up transferee entities. Therefore, these assessees have to be treated as employees of a State Government duly eligible for ss. 10(10A) and 10(10AA) benefits.  (AY.2018-19, 2019-20)