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2022 (10) TMI 463 - AT - Income TaxDisallowance of provision made in respect of an anticipated loss being the diminution in the value of Govt. of India Fertilizer Bonds - CIT-A had followed the decision in assessee’s own case for AYs. 2009-10, 2010-11 & 2014-15 [2018 (4) TMI 1581 - ITAT CUTTACK] and [2018 (4) TMI 1581 - ITAT CUTTACK] to delete the addition - .HELD THAT:- As the assessee is not fixing the rates in respect of the diminution, which is being fixed by an authority under the Govt. which has a responsibility of fixing the rates in respect of the bonds/security. In lieu of the cash subsidy due from the Govt. of India, the assessee had been forced to accept the fertilizers bonds issued by the Govt. of India - loss in respect of the diminution in the value of the fertilizer bonds was specifically computed on the basis of the rates fixed by the Clearing Corporation of India Limited (CCIL), a corporation under the Govt. of India, which is cast to the duty in respect of the valuation of bonds and other securities - the methodology adopted by the assessee was a scientific method. It was supported by the rates issued by the Govt. of India itself and the loss was actually determinable, though would be actually incurred at the time of redemption. CIT(A) has correctly followed the judicial discipline in following the order of the coordinate bench of the Tribunal in assessee’s own case.Case of Tripty Drinks (P.) Ltd [1977 (9) TMI 29 - ORISSA HIGH COURT] distinguished - Decided against revenue. Disallowance of leave encashment claimed u/s.43B(f) - HELD THAT:- We have considered the rival submissions. As it is noticed that the issue of liability of leave encashment claimed u/s.43B(f) of the Act is now squarely covered by the decision of the Hon’ble Supreme Court in the case of Exide Industries Ltd. [2020 (4) TMI 792 - SUPREME COURT] the AO is directed to verify the actual payments of the leave encashment and allow the same on actual payments.
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