https://www.taxtmi.com/caselaws?id=447654 The ITAT Mumbai dismissed the assessee's appeal regarding disallowance of provisions for leave encashment based on actuarial valuation. The tribunal held that Section 43B(f) of the Income Tax Act, inserted after the SC's Bharat Earth Movers judgment, requires actual payment for deduction of leave encashment expenses. The provision overrides accounting principles and allows deduction only upon actual payment, not mere provision. The tribunal applied purposive construction, noting Parliament's intent to prevent deduction claims without actual payment. The CIT(A)'s disallowance was upheld as legally sustainable. en-us Wed, 25 Oct 2023 00:00:00 +0530 Tue, 02 Jan 2024 09:11:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447654 The ITAT Mumbai dismissed the assessee's appeal regarding disallowance of provisions for leave encashment based on actuarial valuation. The tribunal held that Section 43B(f) of the Income Tax Act, inserted after the SC's Bharat Earth Movers judgment, requires actual payment for deduction of leave encashment expenses. The provision overrides accounting principles and allows deduction only upon actual payment, not mere provision. The tribunal applied purposive construction, noting Parliament's intent to prevent deduction claims without actual payment. The CIT(A)'s disallowance was upheld as legally sustainable. Case-Laws Income Tax Wed, 25 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447654