TaxTMI 
TaxTMI 
1987 (12) TMI 79
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....cylinders. It also deals in purchase and sale of gas cylinders. For its employees there is an agreement at the time of employment which entitles the employees to what is described as a privilege leave with pay of 30 days per year. The employees are entitled to carry forward the unavailed leave to the next year and the leave can be accumulated up to a maximum period of 180 days. The employees can also surrender the leave but up to maximum period of 15 days during one financial year of 30 working days once during two financial years. The employees avail of this leave or encash it at the time of discontinuance of service, which may be caused by any of the following : (a) Resignation (b) Retrenchment (c) Retirement (d) Termination 3. On th....
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....sp; Rs. &....
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....nbsp; --------- ------------ ....
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....sp; ----------- 2,06,541.30 ....
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....ls on this issue. 8. We find from the assessment order for the year 1983-84 that the claim before the IAC (A) was that the assessee has changed the method of accounting, qua, the liability for leave encashment and, therefore, the liability which had been qualified on ascertainable and reasonable basis at Rs. 2,06,541 should be allowed. Now, in so far as the change of method of accounting is concerned, it could not have applied to the asstt. year 1982-83 for which the accounts had already been closed. In fact, in the books of account, which had been closed before this thought cross the mind of those, who run the affairs of the company debit had already been made for actual encashment of leave. Therefore, to our mind, there is no case made o....