The Tax Publishers2020 TaxPub(DT) 0431 (Kol-Trib)

INCOME TAX ACT, 1961

Section 43B(f)

Where assessee claimed deduction of provision made for leave encashment as per actuarial valuation, relying on the decision of Kolkata High Court in Exide Industries Ltd. (2007) 292 ITR 470 (Cal) : 2007 TaxPub(Dt) 1321 (Cal). Matter was remanded back to AO for adjudication to await final outcome of Supreme Court in SLP (Civil) 22889 of 2008 in Exide Industries Ltd. case and to decide the issue as per decision of Supreme Court.

Business disallowance under section 43B(f) - Deduction on actual payment - Provision for leave encashment -

Assessee claimed deduction of provision made for leave encashment as per actuarial valuation relying on the decision of Kolkata High Court in Exide Industries Ltd. (2007) 292 ITR 470 (cal): 2007 TaxPub(DT) 1321 (cal). AO did not accept assessee's claim observing that department had preferred a Special Leave Petition before Supreme Court and stay of the Order of Kolkata High Court was granted by Supreme Court.Held: Matter was remanded back to AO for adjudication to await final outcome of Supreme Court in SLP (Civil) 22889 of 2008 in M/s. Exide Industries Ltd. case and to decide the issue as decision of Supreme Court.

REFERRED : Exide Industries Limited and another v. UOI & Ors. (2007) 292 ITR 470 (Cal) : 2007 TaxPub(DT) 1321 (Cal-HC)

FAVOUR : Matter remanded.

A.Y. : 2011-12

INCOME TAX ACT, 1961

Section 4

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