2013 (8) TMI 1173

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....y the assessee against the order dated 10-3-2000, passed by the learned CIT(A), Mumbai relating to the assessment year 1996-97. The assessee in this appeal has raised dispute on three different grounds. 2. The first issue is in regard to disallowance of provision for leave encashment of Rs.1,19,53,404/-. The AO held that the provision was for contingent liability. He placed reliance on the judgme....

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....ned liability. Once the incurring of the liability is certain, the claim has to be allowed even if the liability is discharged at a future date. We find that this issue relating to allowability of claim of provision for leave encashment is settled by the judgment of the Hon'ble Supreme Court in the case of Bharat Earth Movers Ltd., reported in 245 ITR 428, in which it has been held that the pr....

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....nal in the case of M/s BNP Paribas, decided in ITA Nos. 4601&4602/M/2004, vide order dated 1-7-2013. In that case also the tax rate applied in the case of the assessee, a foreign company was 48% compared to 38% applied in case of domestic companies. The assessee had argued that it was discriminatory and not in accordance with law. Reference was made to non-discrimination clause in the Treaty, as p....