https://www.taxtmi.com/caselaws?id=64416 Leave salary and leave wage provisions are not deductible where leave rules provide no encashment on retirement, death, resignation or termination and payment depends on uncertain future events, such as an employee taking leave or falling ill. Deduction requires a present, ascertained liability capable of reliable valuation, not a contingent obligation. Ex gratia payments and additional salary or bonus paid to employees are also not deductible where they are, in substance, bonus payments but are unsupported by trade custom, settlement, agreement or another legal basis. Relabelling bonus-like payments as ex gratia or extra salary does not remove applicable statutory restrictions. en-us Thu, 13 Sep 1984 00:00:00 +0530 Mon, 07 Feb 2011 17:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64416 Leave salary and leave wage provisions are not deductible where leave rules provide no encashment on retirement, death, resignation or termination and payment depends on uncertain future events, such as an employee taking leave or falling ill. Deduction requires a present, ascertained liability capable of reliable valuation, not a contingent obligation. Ex gratia payments and additional salary or bonus paid to employees are also not deductible where they are, in substance, bonus payments but are unsupported by trade custom, settlement, agreement or another legal basis. Relabelling bonus-like payments as ex gratia or extra salary does not remove applicable statutory restrictions. Case-Laws Income Tax Thu, 13 Sep 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64416