1984 (3) TMI 37

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....case, the assessee is entitled to claim deduction, under the Wealth-tax Act, in respect of provision made by the firm for payment of leave with wages ? 2. Whether, on the facts and in the circumstances of the case, and on the basis of the materials on record, the Tribunal is right and reasonable in law and fact in holding that in the cashew circles in Kerala leave with wages is merely an additional wage available, to every worker and it has nothing to do with leave at all? " The assessees are partners of a firm called Indian Nut Products, Quilon, which is engaged in the business of manufacturing and exporting cashew kernels. For the assessment year 1974-75 relevant to the valuation date, December 31, 1973, the assessees claimed, while....

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....s thus bound to grant such leave with wages but there is no provision either in section 79 or any other section of the Factories Act which operates as a bar to the grant of leave with wages for workers in seasonal industries which from their nature cannot be carried on for 240 days in a year. It cannot, therefore, be held that the Tribunal had no jurisdiction to grant leave with wages irrespective of the total number of working days in a calendar year. " Although that was a case which arose from proceedings before the Industrial Tribunal, the dictum laid down by this court, as found by the Tribunal, gave rise to the custom or practice which has come to be accepted as a liability on the part of the management and a right vested in the wor....

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....bunal found that on December 31, 1973, which is the relevant valuation date, amounts had already been set apart towards leave with wages in respect of persons who worked during the year 1973. This is what the Tribunal said at the end of paragraph 6 of the order " On 31-12-1973, the last day of the accounting year, a further credit of Rs. 50,874.99 was made, being provision under this A/c for the year 1973, and this is carried forward to next year. The Tribunal concluded in paragraph 8 of the order: " in view of the discussion above, it would appear that leave with wages is merely an additional wage available to every worker and it has nothing to do with leave at all.....". Appearing for the Department, Shri N.R.K. Nair, refers t....