Validity of Amendment – Arbitrary amendment - Insertion of clause (f) to s.43B

Last updated: 29 August 2007

Court :
High Court of Kolkata

Brief :
Validity of Amendment – Arbitrary amendment - Insertion of clause (f) to s.43B In original section 43B certain payments were held allowable only on actual payment s.43B was amended by inserting clause (f) to disallow liability towards leave encashment on due basis. No reasons for such amendment disclosed. Without such reasons the amendment was inconsistent with the original provisions of s.43B. The amendment made with the sale object of nullifying the Supreme Court’s judgement in 245 ITR 428 (SC), being arbitrary was to be struck down being invalid. High Court of Calcutta Exide Industries Ltd. and Anr. vs UOI and Ors. A.P.O. No. 301 of 305, W.P. No. 2512 of 2002 Ashim Kumar Banerjee and Tapas Kumar Giri, JJ 27 June 2007 Debi Prasad Pal, Manisha Seal and N. Pal (Banerjee) for the Appellant Shibdas Banerjee and Asha Ghutghutia for the Respondent

Citation :
Exide Industries Ltd. and Anr. vs UOI and Ors. Citation 292 ITR 470