https://www.taxtmi.com/caselaws?id=400811 The Supreme Court dismissed the appeal under Section 260 A of the Income Tax Act, 1961, ruling against the assessee regarding the entitlement to deduction for provision for Leave encashment. The Court emphasized the need to actually pay the leave encashment amount in the same financial year to claim a deduction, stating that leave encashment is a trading liability, not a statutory one. Referring to a previous decision involving Exide Industries Limited, the Court held that the legislature can amend laws but must provide reasons consistent with the Constitution and laws. The appeal was dismissed with no costs awarded. en-us Wed, 14 Oct 2020 00:00:00 +0530 Thu, 19 Nov 2020 17:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400811 The Supreme Court dismissed the appeal under Section 260 A of the Income Tax Act, 1961, ruling against the assessee regarding the entitlement to deduction for provision for Leave encashment. The Court emphasized the need to actually pay the leave encashment amount in the same financial year to claim a deduction, stating that leave encashment is a trading liability, not a statutory one. Referring to a previous decision involving Exide Industries Limited, the Court held that the legislature can amend laws but must provide reasons consistent with the Constitution and laws. The appeal was dismissed with no costs awarded. Case-Laws Income Tax Wed, 14 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400811