Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 122 - AT - Income TaxBook adjustments u/s 115JB of the Act - MAT - Provision for leave encashment – Held that:- The decision in Bharat Earth Movers Versus Commissioner of Income-Tax [2000 (8) TMI 4 - SUPREME Court] followed - meeting the liability incurred by the company under the leave encashment scheme proportionate with entitlement earned by employees of the company inclusive of officers and the staff subject to ceiling of accumulation as applicable on the relevant date is entitled to deduction out of the gross receipt for the accounting year during which the provision is made for the liability - the liability is not a contingent liability - the provision made for leave encashment cannot be considered to be a contingent liability - there is no question of any addition – thus, the addition is liable to be set aside – Decided in favour of Assessee.
|