TaxTMI 
TaxTMI 
2023 (7) TMI 19
X X X X Extracts X X X X
X X X X Extracts X X X X
....8-19. 2. The assessee has raised the following grounds of appeal: "1. The order of Commissioner of Income Tax (Appeals) /National Faceless Appeal Centre (NFAC) is contrary to law, facts and in the circumstances of the case. 2. The Commissioner of Income Tax (Appeals) /National Faceless Appeal Centre (NFAC) erred in confirming the disallowance of the deduction of Rs. 1,26,73,897/- made by the Appellant representing the provision for leave encashment / unearned leave reversed as the same has not been allowed as a deduction in the earlier years. 3. The Commissioner of Income Tax (Appeals) /National Faceless Appeal Centre (NFAC) ought to have appreciated that claim for Rs. 1,26,73,897/- was not in the nature of expenditure for earned lea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....6, 73,897/- represented the withdrawal of provision no longer required which was credited to the expenditure whereby reducing the expenditure claimed. As this is reduction in the claim of expenditure on account of reversal of provisions is not in the nature of taxable income as provision was not allowed in the earlier years, the claim of the Appellant should have been accepted. 7 The Appellant reduced this amount of Rs. 1,26, 73,897/- in the memo of income in view of the fact that this amount has effectively reduced the expenditure claimed and as this amount did not represent the income, the same required to be reduced from taxable income. 8 The Appellant craves leave to file additional grounds at the time of hearing." 3. The brief fac....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... set aside to the file of the Assessing Officer to verify the facts with regard to the claim of the assessee and to decide the issue in accordance with law. 5. The ld. DR, supporting the order of the CIT(A) submits that deduction claimed by the assessee is for provision for leave encashment, but not for actual payment and this fact has been brought out by the Assessing Officer and the ld. CIT(A). Therefore, there is no reason to set aside the appeal to the file of the Assessing Officer. 6. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. The appellant provides for liability towards leave encashment by debiting to profit and loss account and crediting to provision for l....