1988 (5) TMI 25

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.... S. P. GOYAL J.-The assessee, a limited company, which was engaged in the manufacture of worsted yarn, woollen yarn, shoddy yarn and textile goods, during its accounting period ending on March 31, 1972, made provision for leave with wages and claimed a deduction of Rs. 48,368 as business expense. The Income-tax Officer, holding that it was a contingent liability, disallowed the claim. The conte....

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.... referred to this court for opinion : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in confirming the disallowance of Rs. 47,209 on account of the assessee's claim under the head 'Leave with wages' made for the assessment year 1972-73 ? (2) If the answer to question No. 1 is in the affirmative, whether, on the facts and in the circumstances of t....

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....al was bound to give reasons for rejecting the application and unless it was found that the failure to raise the plea earlier was either wilful or intentional, the assessee should have been allowed to raise the plea. Nothing substantial was urged by learned counsel for the Revenue to controvert the rule laid down in the authorities cited above. Question No. (2) is, accordingly, answered in the neg....