PROVISION FOR LEAVE ENCASHMENT

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Yogesh Kumar (Querist)
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10 December 2010 During the assessment preceding the assessing officer raise the question

WHY THE PROVISION FOR LEAVE ENCASHMENT WILL BE ALLOWED?

Now can someone provide me the arguments which I can make to the Assessing Officer for the above mentioned?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 December 2010 Section 43B clause (f) reads as under -
any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee

shall be allowed on payment basis.
ITO is not wrong.

Calcutta High Court has , however,
commented upon this provision as being arbitrary one.
Case laws which may be referred-
Bharat Earth Movers Ltd V CIT (2000_ 245 ITR , Exide Industries Ltd. V Union of India (2007) 164 taxman 9(cal.)

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