https://www.taxtmi.com/caselaws?id=5816 SC allowed the appeal, holding that a company's provision for encashment of earned leave (subject to the applicable accumulation ceiling) is an allowable deduction in the accounting year in which the liability is incurred. The Court ruled such liability is in praesenti, not contingent, provided it is certain to have been incurred and can be estimated with reasonable certainty even if payable later. The High Court's contrary view was set aside and the Tribunal's reference was answered in favour of the assessee against the Revenue. en-us Wed, 09 Aug 2000 00:00:00 +0530 Tue, 23 Jun 2026 11:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5816 SC allowed the appeal, holding that a company's provision for encashment of earned leave (subject to the applicable accumulation ceiling) is an allowable deduction in the accounting year in which the liability is incurred. The Court ruled such liability is in praesenti, not contingent, provided it is certain to have been incurred and can be estimated with reasonable certainty even if payable later. The High Court's contrary view was set aside and the Tribunal's reference was answered in favour of the assessee against the Revenue. Case-Laws Income Tax Wed, 09 Aug 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5816