2020 (11) TMI 575

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....aban For Respondent: Mr.T.Ravikumar Senior Standing counsel JUDGMENT T.S.Sivagnanam, This appeal has been filed by the assessee under Section 260 A of the Income Tax Act, 1961 ('the Act' for brevity), challenging the order dated 19.05.2016 passed by the Income Tax Appellate Tribunal, Madras, 'D' Bench ('the Tribunal' for brevity) in I.T.A.No.1736/Mds/2014 for th....

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....for leave encashment which has been determined scientifically and accurately based on actuarial valuation, and the incurring of expenditure is certain and has arisen in the previous year ended in 31st March 2004. 4. Whether, on the facts and in the circumstances of the case, The Tribunal was right in law in not following the decision in Exide Industries Ltd and another Vs. Union of India ....

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....the form of a bounty and forms a part of the conditions of service of the employee. An employer seeking deduction from tax liability in advance, in the name of discharging the liability of leave encashment, without actually extending such payment to the employee as and when the time for payment arises may lead to abhorrent consequences. When time for such payment arises upon retirement (or otherwi....