https://www.taxtmi.com/caselaws?id=394885 SC upheld constitutional validity of clause (f) of s.43B of the 1961 Act and reversed the HC. The Court held clause (f) permissibly conditions tax deduction for leave-encashment on actual payment, without altering the present-liability character under mercantile accounting. The amendment was a legitimate, prospective legislative regulation to protect revenue and employee welfare, not an unconstitutional or arbitrary intrusion; it merely defers tax benefit until payment. The challenge failed for want of demonstrated constitutional infirmity and the HC's characterization of clause (f) as arbitrary was set aside. en-us Fri, 24 Apr 2020 00:00:00 +0530 Mon, 06 Oct 2025 12:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=394885 SC upheld constitutional validity of clause (f) of s.43B of the 1961 Act and reversed the HC. The Court held clause (f) permissibly conditions tax deduction for leave-encashment on actual payment, without altering the present-liability character under mercantile accounting. The amendment was a legitimate, prospective legislative regulation to protect revenue and employee welfare, not an unconstitutional or arbitrary intrusion; it merely defers tax benefit until payment. The challenge failed for want of demonstrated constitutional infirmity and the HC's characterization of clause (f) as arbitrary was set aside. Case-Laws Income Tax Fri, 24 Apr 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=394885