ITAT allows Rs 12.27 lakh tax benefit in leave encashment case

The Income Tax Appellate Tribunal (ITAT) in Chennai has ruled in favor of a taxpayer's claim for a Rs 12.27 lakh benefit related to leave encashment. The case centered on a retrospective hike in the tax exemption limit from Rs 3 lakh to Rs 25 lakh. The tribunal determined this increase represented an enhancement of an existing benefit, not the creation of a new one. It viewed the amendment as remedial and intended to reduce taxpayer hardship and ensure parity between government and private sector employees.