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2017 (5) TMI 1611 - AT - Income TaxRevision u/s 263 - addition on account of arrear payment due and payable consequent on wage revision - Held that:- AO while completing the assessment has made due enquiries on this aspect and the assessee has also given a reply. As pointed out by the assessee a bipartite settlement between the commercial banks would equally apply to the Regional Rural Banks also. In the circumstances it cannot be said that action of the AO in allowing the claim of the assessee for deduction was erroneous. It was a possible view which the AO has taken and just because CIT does not agree with the view expressed by the AO jurisdiction u/s 263 cannot be invoked. The decision of Malabar Industries Ltd. [2000 (2) TMI 10 - SUPREME COURT] clearly supports the plea of the assessee in this regard. Besides the above, we are also of the view that the AO had made proper enquiries before concluding the assessment.- decided in favour of assessee Allowing deduction of provision for leave encashment - Held that:- As per proviso to Section 43B(f) of the Act any sum actually paid on account of leave encashment on or before due date before filing the return of income should be allowed as deduction. As far as direction of CIT to the AO to re-examine and reverify the contingencies liability of ₹ 2,55,66,000/- included in the provision under contingencies debited in profit and loss account, the ld. Counsel did not press the relevant ground of appeal and was agreeable for the AO making an enquiry on this aspect in the set aside proceedings. Hence this issue is decided against the assessee - Appeal decided partly in favour of assessee
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