https://www.taxtmi.com/caselaws?id=24771 Provision for leave encashment was held to be an inadmissible deduction because the employer's liability arose only on termination of employment and remained dependent on a future contingency. The amount set apart was not an ascertained expenditure, as the obligation was neither definite nor accrued at the time of computation of taxable profits. The leave rules were treated as substantively similar to statutory leave provisions where the liability is contingent rather than accrued, so the deduction was disallowed and the issue was answered against the assessee. en-us Thu, 05 May 1988 00:00:00 +0530 Fri, 22 Jan 2010 12:21:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24771 Provision for leave encashment was held to be an inadmissible deduction because the employer's liability arose only on termination of employment and remained dependent on a future contingency. The amount set apart was not an ascertained expenditure, as the obligation was neither definite nor accrued at the time of computation of taxable profits. The leave rules were treated as substantively similar to statutory leave provisions where the liability is contingent rather than accrued, so the deduction was disallowed and the issue was answered against the assessee. Case-Laws Income Tax Thu, 05 May 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24771