Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 1139 - HC - Income TaxProvision of leave encashment - admissible deduction - Held that:- After having perused the order of the Appellate Tribunal in the light of the judgment of Hon'ble Supreme Court in the case of “Bharat Earth Movers Ltd. v. C.I.T., (2000 (8) TMI 4 - SUPREME Court ) we are of the opinion that the point is covered against the Revenue and in favour of the assessee. In paragraph 25 of the order under challenge, the Tribunal has reproduced the observations of the Hon'ble Supreme Court wherein held that the amount should be capable of being estimated with reasonable certainty although the actual quantification may not be possible. In the present case material was brought before the Tribunal to show that the provision for leave encashment has to be made by the employer. That is pertaining to the benefit which is availed by the employees. Such of the employees who do not avail of the leave to their credit get the benefit of this scheme. The amounts have to be paid at the end of their tenure/service. In such circumstances, the provision is made by the assessee in the account for the same. That is an estimation and which is permissible in terms of the Supreme Court's judgment. The view taken by the Tribunal is possible in the given facts and circumstances. Therefore, on this count no substantial question of law arises for determination in this appeal.
|