2015 (12) TMI 1819

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....) Commissioner of Income-tax(Appeals) is not justified in conforming the disallowance of provision for leave encashment of Rs. 6,45,609/- payable to its employees claimed as deduction by the Appellant based on the decision of the Hon'ble Calcutta High Court in the case of Exide Industries Limited V/s. Union of India (292 ITR 470). (b) Commissioner of Income-tax(Appeals) ought to have seen hat as held by the Hon'ble Calcutta High Court, the liability to pay leave encashment is a trading and ascertained liability and not a contingent liability. Therefore Commissioner of Income-tax(Appeals) is not justified in confirming the disallowance of expenditure on leave encashment while computing the income. 3. Commissioner of Income-tax(Ap....

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.... "3. After considering the rival contentions, we do not see any reason to interfere with the order of the Ld. CIT(A). Even though it is a fact that Hon'ble Calcutta High Court in the case of Exide Industries Ltd. V/s. Union of India (292 ITR 470) supra has struck down provisions of Section 43B(f), the Hon'ble Supreme Court stayed that order. Consequently, the provisions of Section 43B(f) are applicable. CIT(A)'s order is in accordance with the principles on the subject. We however, direct the Assessing Officer (AO) to give relief to assessee in case Hon'ble Supreme Court also concurs with the opinion expressed by the Hon'ble Calcutta High Court. The ground for the time being is considered allowed for statistical purpose....