TMI Blog2013 (8) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 10-3-2000, passed by the learned CIT(A), Mumbai relating to the assessment year 1996-97. The assessee in this appeal has raised dispute on three different grounds. 2. The first issue is in regard to disallowance of provision for leave encashment of Rs.1,19,53,404/-. The AO held that the provision was for contingent liability. He placed reliance on the judgment of Hon'ble Karnataka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urring of the liability is certain, the claim has to be allowed even if the liability is discharged at a future date. We find that this issue relating to allowability of claim of provision for leave encashment is settled by the judgment of the Hon'ble Supreme Court in the case of Bharat Earth Movers Ltd., reported in 245 ITR 428, in which it has been held that the provision made on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s BNP Paribas, decided in ITA Nos. 4601 4602/M/2004, vide order dated 1-7-2013. In that case also the tax rate applied in the case of the assessee, a foreign company was 48% compared to 38% applied in case of domestic companies. The assessee had argued that it was discriminatory and not in accordance with law. Reference was made to non-discrimination clause in the Treaty, as per which there should ..... X X X X Extracts X X X X X X X X Extracts X X X X
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