ITAT Upholds Income Revision Under Section 154, Directs AO to Allow Section 43B Leave Encashment Claims

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....The ITAT upheld the rectification order under section 154, revising the assessee's total income to INR 53,16,66,580 from the originally declared INR 52,04,08,740, directing the AO to replace the income figure of INR 58,29,98,519 used in the final assessment with the rectified amount. The tribunal allowed the appeal on this ground. Regarding the addition under section 43B for leave encashment, the ITAT observed that although the CPC disallowed INR 94,88,237, the Tax Audit Report showed payment of INR 48,77,017 made before the due date for filing the return. The AO was directed to verify these payments and allow the claim as per the provisions of section 43B. The order mandates conformity to the rectified income and proper allowance of payments made within the statutory timeline.....