J.P. BENGRA, J.M. above appeal is by Revenue and Cross Objection by assessee against order of AAC of IT, R-Range, Bombay for asst. yr. 1980-81. First we take up appeal. grievance of Department in this appeal is that AAC erred in holding that amount received by assessee on account of encashment of leave while he resigned from company and not retired on superannuation is exempt under s. 10(10AA) of IT Act and accordingly allowing deduction of Rs. 25,000 thereof. At time of filing revised return, assessee excluded amount of Rs. 58,311 being leave encashment allowance. This amount includes leave salary of Rs. 56,000 and salary for two days of Rs. 2,311. ITO did not allow contention of assessee that entire encashment of leave salary is exempt under s. 10(10AA) of IT Act. On appeal, AAC allowed claim of assessee holding that specific provision is made under s. 10(10AA) by Finance Act, 1982 w.e.f. 1st April, 1978. According to this, encashment of leave salary should not be included in total income of assessee. AAC further held that s. 10(10AA) clearly speaks of all cases of encashment of leave salary irrespective of fact whether they retired on superannuation or otherwise. word "otherwise" is wide enough to include all cases of retirement whether on superannuation or before. It also includes termination of service, voluntary or compulsory retirement. Since assessee retired by giving resignation on 2nd Sept., 1979, s. 10(10AA) is applicable and he is entitled to relief of Rs. 25,500. Department is aggrieved by that order and has come up in appeal before us. At time of hearing, ld. Departmental Representative. Shri Keshav Prasad contended that since words "whether on superannuation or otherwise" qualify word "retirement" unless it is case of retirement from service on attaining particular age or on some other reasons, case of resignation will not be taken into consideration for word "otherwise". He, therefore, submitted that case of assessee in present case is not covered by provisions of s. 10(10AA) of IT Act since he has signed from service. As against this, ld. counsel for assessee submitted that term "retirement" is not confined case of retirement of service on superannuation only but would cover also case of termination of service by assessee's own voluntary resignation. Continuing his argument he submitted that word "otherwise" as appearing in s. 10(10AA) covers entirement of employee in all other cases except superannuation. This world cover cases of leave encashment, payments on death, retrenchment, premature retirement, voluntary retirement, resignation, force retirement, termination of service by employer, striking off name from rolls etc. In all such cases, benefit of tax exemption of leave encashment to employee on retirement otherwise than on superannuation will be available. We have considered rival submissions. In order to appreciate legal position, we will mention here meaning off words "retire", "retirement" and "resignation" given in different dictionaries. I. Chambers Twentieth Century Dictionary (1972 Ed.) retire (vi): to withdraw, to retreat, to recede, to withdraw from society, office, public or active life, business, profession , etc. retirement: Act of retiring, state of being or having retired. Resignation: Act of giving up, state of being resigned or quietly submissive. II. Concise Oxford Dictionary retire (vi): to withdraw, to go away, to retreat to seek seclusion or shelter. retirement: seclusion, privacy, secluded place. Resign (vi.): relinquish, surrender, give up, hand over (office, right, claim property, charge, task, life, hope etc.) There is no dispute that provisions of s. 10(10AA) have been incorporated in Act retrospectively. If we are of view that resignation also includes within definition of s. 10(10AA), then case of assessee will b e covered by this section. According to simple meaning of dictionary, word "retirement" means to withdraw from society, office, public or active life, business, profession etc. and word "resignation" relinquish, surrender, give up office, right, claim, property. These are two synonymous words. In first place, we will agree with assessee that term "retirement" does not necessarily refer to termination of service on superannuation. According to terms of employment, it also includes case where person voluntarily retires from services by his resignation. Secondly, s. 10(10AA) refers to case of retirement not only on superannuation but also otherwise. It would, according to us, cover case also where person resigns from employment on account of old age, sickness etc., even before period of superannuation or expiry of period of service. assessee's claim for exclusion of amount of encashment of leave from total income was considered in case of N.b. Tendolkar vs. ITO by Tribunal reported in (1980) 19 CTR (Trib) 27 (Mad) where on event of resignation also provisions of s. 10(10AA) was made applicable. Even otherwise word "otherwise" as appearing in s 10(10AA) covers retirement of employee. In all other cases, except superannuation, this would cover cases of leave encashment, payment on death, retrenchment, premature retirement, voluntary retirement, resignation, force retirement etc. word 'otherwise' is very significant which covers all sorts of cases in which person either voluntarily withdrew from office or he is retired b y Government/employer on account of attaining certain age. Our view is qualified by decision of Hon'ble Madras High Court in case of CIT vs. R.J. Shahney (1986) 54 CTR (Mad) 360: (1986) 159 ITR 160 (Mad) wherein it has held as under: "Under provisions of s. 10(10AA), payment received by employee as cash equivalent of leave salary in respect of period of earned leave to his credit at time of his retirement whether on superannuation or otherwise, shall not be included in computing total income. In this case, assessee resigned and retired from employment. Learned counsel for Revenue sought to contend that since words "whether on superannuation or Revenue sought to contend that since words "whether on superannuation or otherwise" qualify "retirement" unless it is case of retirement from service on attaining particular age or on some other reason, case of resignation will not take in. We are unable to agree. retirement may be of various kinds. It may be on superannuation or it may be voluntary. If there is any voluntary retirement from service, we are satisfied that provision of s. 10(10AA) would apply. Therefore, no question of law could be said to arise out of order of Tribunal. petition is accordingly dismissed with costs. Counsel's fee Rs.. 250." We would like to mention here that ld. Departmental Representative was unable to cite any contrary decision of any other High Court in this matter. Respectfully following above said decision, we would hold that word 'otherwise' used in Act covers all sorts of cases of retirement whether by resignation or by premature retirement, voluntary retirement or termination of service by employer. Therefore, we hold that AAC was right in allowing exemption to assessee. We find no merit in departmental appeal. Now we take up Cross Objection. grievance of assessee in this cross objection is that AAC erred in not accepting contention of assessee that amount of Rs. 58,311 received in lieu of encashment of leave salary is capital receipt and as such is not taxable at all. Since at time of hearing, ld. counsel for assessee has not pressed this cross objection, we need not discuss same. In result, appeal of department as well as Cross objection of assessee are dismissed. *** THIRD INCOME TAX OFFICER v. M.A. BADLANEY