TMI Blog2020 (11) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... Sivagnanam And Mrs. Justice V. Bhavani Subbaroyan For the Appellant : Mr.R.Vijayaraghvan for M/s.Subbaraya Aiyar Padmanabhan For the Respondent : Mr.T.Ravikumar Senior Standing counsel JUDGMENT T.S.SIVAGNANAM, J. This appeal has been filed by the assessee under Section 260 A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order dated 20.03.2019 made in I.T.A.No.688/Chny/2013 on the file of the Income Tax Appellate Tribunal 'B' Bench, Chennai ('the Tribunal' for brevity) for the assessment year 2007-08. 2.This appeal has been filed by raising the following substantial questions of law:- Provision for Leave Encashment 1.Whether the Tribunal was right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting sub-section (f) no special reasons were disclosed. His Lordship held that such disclosure was not mandatory. We do not have any reason for disagreement on such issue provided the subject amendment could be termed as in furtherance to widen the scope of original section on the identical objects and reasons as disclosed at the time of enacting the original provision. As we find, the original section was incorporated to plug in deductions claimed by not discharging statutory liabilities. We also find that provision was subsequently made to restrict deductions on account of unpaid loan to the financial institutions. Leave encashment is neither statutory liability nor a contingent liability. It was a provision to be made for the entitl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inserted to plug in evasion of statutory liability. The Apex Court considered the situation in the case of Bharat Earth Movers (Supra) when sub-section (f) was not there. The Apex Court, considering all aspect as disclosed by us hereinbefore, rejected the contention of the Revenue and granted appropriate deduction to the concerned assessee. The legislature to get rid of the decision of the Apex Court brought out the amendment which would otherwise nullify the judge made law. The Apex Court decisions are judge made law and are applicable to all under the Constitution It is noteworthy that the High Court did not question the existence of power of the legislature to enact the subject clause, as can be discerned from the following o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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