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2013 (12) TMI 1100 - AT - Income TaxProvision of PACS Manager salary – Held that:- Following ACIT vs Rajasthan State Cooperative Bank Ltd., Jaipur [2013 (9) TMI 38 - ITAT JAIPUR] - Allowability of contribution by the Apex Bank for PAC Mangers salary is a statutory liability which is crystallized at the end of every year - The contribution once made become at the disposal of Registrar of Cooperative Society which is payable as and when demanded by the Registrar Cooperative Society alongwith interest on it - It is not contingent liability but a statutory liability which is crystallized at the end of every year and hence the liability is allowable – Decided in favour of assessee. Premium of leave encashment – Held that:- Following CIT vs Hindustan Latex Ltd. [2012 (6) TMI 713 - KERALA HIGH COURT] - Leave encashment is not a statutory liability and even in the case of provision being made the deduction was allowed as a business expenditure - It was not a provision which was disowned but an actual liability towards premium paid on insurance policy and the liability was allowable as a deduction u/s 37 being an expenditure incurred for the purpose of business – Decided in favour of assessee.
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