https://www.taxtmi.com/caselaws?id=777612 The ITAT Kolkata examined a disallowance of provision for leave encashment and the appellate deletion of that addition. It noted that only actual payment toward leave encashment is deductible, following the Supreme Court's reversal of the earlier High Court view on allowability of such provision. As the assessee had made actual payment for the existing liability, the Tribunal set aside the deletion and remanded the matter to the Assessing Officer for fresh adjudication after giving reasonable opportunity of hearing. The provision was to be added back, subject to allowance of the actual payment on verification. en-us Thu, 28 Aug 2025 00:00:00 +0530 Tue, 02 Sep 2025 08:01:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=777612 The ITAT Kolkata examined a disallowance of provision for leave encashment and the appellate deletion of that addition. It noted that only actual payment toward leave encashment is deductible, following the Supreme Court's reversal of the earlier High Court view on allowability of such provision. As the assessee had made actual payment for the existing liability, the Tribunal set aside the deletion and remanded the matter to the Assessing Officer for fresh adjudication after giving reasonable opportunity of hearing. The provision was to be added back, subject to allowance of the actual payment on verification. Case-Laws Income Tax Thu, 28 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=777612