https://www.taxtmi.com/caselaws?id=10749 The court held that the payment of leave salary to retiring employees constitutes "salary" under Explanation 2 to section 40A(5), limiting deductible expenditure. The court disagreed with the Tribunal's decision and ruled in favor of the Revenue. Regarding statutory liabilities paid after the previous year but before the due date for filing, the court upheld the deductions, aligning with the Supreme Court precedent. The outcome favored the assessee on this issue. The court disposed of the reference without costs. en-us Fri, 17 Jun 2005 00:00:00 +0530 Fri, 24 Jul 2009 12:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10749 The court held that the payment of leave salary to retiring employees constitutes "salary" under Explanation 2 to section 40A(5), limiting deductible expenditure. The court disagreed with the Tribunal's decision and ruled in favor of the Revenue. Regarding statutory liabilities paid after the previous year but before the due date for filing, the court upheld the deductions, aligning with the Supreme Court precedent. The outcome favored the assessee on this issue. The court disposed of the reference without costs. Case-Laws Income Tax Fri, 17 Jun 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10749