UNIVERSAL CABLES LIMITED,KOLKATA vs. A.C.I.T.,CIRCLE-6(1), KOLKATA

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ITA 53/KOL/2025Status: DisposedITAT Kolkata12 June 2025AY 2017-18Bench: SHRI DUVVURU RL REDDY, VICE PRESIDENT (KZ), SHRI RAKESH MISHRA (Accountant Member)7 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the payment of ₹ 44,51,267/- for leave encashment in AY 2017-18 is allowable under Section 43B(f) of the Act, irrespective of when the provision was made. It clarified that appellate authorities, unlike Assessing Officers, have the power to admit additional grounds, citing the decisions in Goetze (India) Ltd. and Jai Parabolic Springs Limited. The AO was directed to allow the deduction upon verification of payment evidence.

What were the facts?

The assessee, Universal Cables Limited, filed its return for AY 2017-18, which was assessed under Section 143(3) of the Income Tax Act. The assessee sought deduction of ₹ 44,51,267/- for leave encashment paid during AY 2017-18, which pertained to provisions made in earlier assessment years (2002-03, 2003-04, 2004-05) and had been disallowed at that time. The Ld. CIT(A) denied this claim, refusing to admit it as an additional ground, citing the Goetze (India) Ltd. decision.

What were the issues?

Whether a claim for deduction of leave encashment, disallowed in earlier years on an accrual basis but actually paid in the current year, can be allowed under Section 43B(f) as an additional ground before the appellate authority.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 43B(f),Section 119(2)

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Income Tax Appellate Tribunal, KOLKATA ‘D’ BENCH, KOLKATA

Before: SHRI DUVVURU RL REDDY(KZ) & SHRI RAKESH MISHRA

order

: 12-June-2025 ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

1.

This appeal filed by the assessee is against the order of the ADDL/JCIT(A)- Prayagraj [hereinafter referred to as Ld. ‘Addl/JCIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2017-18 dated 14.11.2024, which has been passed against the assessment order u/s 143(3) of the Act, dated 10.12.2019.

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