#Statutory Exemption

ITAT Pune has ruled that delays in filing appeals for leave encashment exemptions under Section 10(10AA) may be condoned when the taxpayer’s claim falls well below the enhanced Rs. 25 lakh limit and the delay stems from genuine hardship, not negligence. This reinforces that procedural rigidity must yield to substantive fairness in tax exemptions, benefiting retired employees navigating complex compliance timelines.

The Central Sales Tax Appellate Tribunal ruled that pre-agreement conduct cannot override statutory requirements for tax classification; only Form F compliance and agreements executed after August 1, 1995, determine whether a transaction qualifies as consignment or inter-state sale. This clarifies a critical compliance threshold for manufacturers and traders dealing with multi-state stock transfers under the CST Act.

The Bombay High Court ruled that non-registration of a development agreement does not bar deemed conveyance under MOFA if the transactional history, possession, and statutory exemption under ULC prove the promoters' substantive rights. Landowners who availed ULC benefits are estopped from resisting conveyance, reinforcing statutory intent to protect flat owners' ownership rights.

CESTAT Chennai rules that renting immovable property for residential use-even if leased to a company and occupied by its managing director-falls under the statutory exemption from service tax under Section 65(105)(zzzz) of the Finance Act. The ruling clarifies that the nature of use, not the lessee’s identity, determines tax liability, offering relief to property owners and corporate lessors.

ITAT holds that TDS under Sections 194C and 194J does not arise if aggregate payments fall below statutory thresholds or exemption conditions are met, clarifying compliance obligations for traders.