Tribunal remands leave encashment issue, upholds deletions under various sections, and dismisses Revenue's appeal.

The Tribunal remanded the issue of addition on account of leave encashment to the Assessing Officer for fresh consideration based on Supreme Court orders. The Tribunal upheld the deletion of additions made under section 80IA, disallowance on account of capital investment subsidy and sales tax remission, and under section 14A of the Act. The appeal of the assessee was allowed, and the appeal filed by the Revenue was dismissed, resolving all issues raised by both parties.

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Issues:
1. Addition made by the Assessing Officer on account of leave encashment.
2. Deletion of addition made under section 80IA of the Act.
3. Deletion of disallowance made on account of capital investment subsidy and sales tax remission.
4. Deletion of disallowance made under section 14A of the Act.

Issue 1: Addition on account of leave encashment
The Tribunal noted that the only issue to be decided was whether the CIT(A) was justified in confirming the addition made by the Assessing Officer on account of leave encashment. Referring to the orders of the Hon’ble Supreme Court in similar cases, the Tribunal remanded the matter to the Assessing Officer for fresh consideration in light of the final order of the Supreme Court. The Tribunal allowed the ground raised by the assessee in this appeal for statistical purposes.

Issue 2: Deletion of addition under section 80IA of the Act
The Tribunal examined the grounds raised by the Revenue regarding the deletion of addition made under section 80IA of the Act. Citing a similar issue disposed of in the assessee’s own case for previous assessment years, the Tribunal found no infirmity in the order of the CIT(A) and dismissed the ground raised by the Revenue.

Issue 3: Deletion of disallowance on account of capital investment subsidy and sales tax remission
The Tribunal addressed the grounds related to the deletion of disallowance made on account of capital investment subsidy and sales tax remission. Referring to previous decisions by the Coordinate Bench and the Tribunal in the assessee’s own case for earlier assessment years, the Tribunal upheld the order of the CIT(A) and dismissed the ground raised by the Revenue.

Issue 4: Deletion of disallowance under section 14A of the Act
Regarding the deletion of disallowance made under section 14A of the Act, the Tribunal observed that the assessee had not earned any exempt income. By relying on the order of the Hon’ble Delhi High Court and the decision in a similar case, the Tribunal upheld the deletion of the addition made by the Assessing Officer. The Tribunal found no infirmity in the order of the CIT(A) and dismissed the ground raised by the Revenue.

In conclusion, the appeal of the assessee was allowed, and the appeal filed by the Revenue was dismissed. The Tribunal pronounced the order on the specified date, resolving all the issues raised by both parties in the appeals.

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