The HC upheld the Tribunal's factual finding that the assessee's...

The HC upheld the Tribunal's factual finding that the assessee's claimed expenditure for gratuity and leave encashment payments corresponded to actual disbursements made during the relevant year, not merely notional or anticipated liabilities. The Tribunal noted that the assessee had adjusted provisions in Schedule 16, reducing gratuity and leave encashment provisions by over Rs. 7 crore, thereby reflecting net amounts debited in the Profit & Loss Account as actual expenses incurred. Consequently, the disallowance based on differences between book valuations and actuarial valuations by LIC and SBI Life was rejected. The HC concluded that the taxable income computation rightly excluded notional provisions, recognizing only actual expenses. The appeal was dismissed, and no substantial question of law was found to warrant interference.