| |
The Tax PublishersITA No. 495/Bang/2018
2021 TaxPub(DT) 0330 (Bang-Trib)INCOME TAX ACT, 1961
Section 43B(f)
In view of provision of section 43B(f), which provides that any sum payable by assessee as an employer in lieu of any leave at the credit of his employee shall not be allowed as deduction, unless it is actually paid and deduction is allowed only in the previous year in which the sum is actually paid; the claim made by the assessee for deduction on account of provision for leave encashment, could not be sustained.
|
Business disallowance under section 43B - Deduction only on actual payment - Provision for leave encashment -
Assessee-regional rural bank claimed deduction on account of provision for leave encashment. AO was of the view that the said expenditure was a contingent expenditure and could not be allowed as deduction. According to him, the claim for deduction could not be allowed in view of clause (f) to section 43B. Held: In view of provision of section 43B(f), which provides that any sum payable by assessee as an employer in lieu of any leave at the credit of his employee shall not be allowed as deduction, unless it is actually paid and deduction is allowed only in the previous year in which the sum is actually paid; the claim made by the assessee for deduction on account of provision for leave encashment, could not be sustained.
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 36(1)(viia)
 SUBSCRIBE FOR FULL CONTENT
|