| Question And Answer | |
|---|---|
| Subject: | LEAVE ENCASHMENT. |
| Category: | Income-Tax |
| Querist: | MADHAVAMURTHY |
| Answered by: | Law Intern |
| Tags: | condonation of delay, LEAVE ENCASHMENT EXEMPTION, Revised return |
| Date: | August 1, 2026 |
I have filed petition u/s 119(2)(b) for A.Y.2021-22 (F.Y.2020-21) before the PCIT. The applicant had filed the original return of income and seeks condonation of delay in filing revised return of income to claim higher exemption on leave salary encashment. CBDT Notification No. 31/2023 dated 24.05.2023 issued vide F.No.200/3/2023-ITA-I. BUT THE CBDT REJECTED. I NEED TO FILE AN APPEAL AGAINST THIS PLEASE ADVISE
An appeal cannot be filed against the s. 119(2)(b) order rejecting condonation of delay. A writ petition in the High Court will have to be filed.
The issue whether CBDT Notification No. 31/2023 dated 24.05.2023 which raised the exemption limit u/s 10(10AA) for non-government employees from ₹3 lakh to ₹25 lakh, effective from 01.04.2023 (AY 2024-25 onwards), is retrospective or not is a disputed issue.
If the High Court is satisfied that there were genuine reasons for the delay, it will permit you to file the return. However, securing the relief on merits may be another battle.