https://www.taxtmi.com/caselaws?id=24747 Provision for leave with wages was not deductible as an accrued liability because entitlement under section 79 of the Factories Act depended on future contingencies such as actual leave, refusal, discharge, resignation, superannuation or death. Mere statutory eligibility did not create a definite liability in the accounting year, and without an established annual payment obligation the amount was not capable of reasonable ascertainment. The gratuity principle was held inapplicable because leave with wages remained uncertain and contingent. The deduction was therefore disallowed, and the reference was answered against the assessee. en-us Tue, 12 Jul 1988 00:00:00 +0530 Fri, 22 Jan 2010 11:07:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24747 Provision for leave with wages was not deductible as an accrued liability because entitlement under section 79 of the Factories Act depended on future contingencies such as actual leave, refusal, discharge, resignation, superannuation or death. Mere statutory eligibility did not create a definite liability in the accounting year, and without an established annual payment obligation the amount was not capable of reasonable ascertainment. The gratuity principle was held inapplicable because leave with wages remained uncertain and contingent. The deduction was therefore disallowed, and the reference was answered against the assessee. Case-Laws Income Tax Tue, 12 Jul 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24747