M/S. S V GHATALIA & ASSOCIATES LLP,KOLKATA vs. DCIT, CIRCLE - 22, KOLKATA, KOLKATA

- This assessee’s appeal for assessment year 2012-13 arises against the Commissioner of Income Tax (Appeals)-6, Kolkata’s order dated 18.04.2017 passed in case No.08/CIT(A)-6/Kol/2015-16 involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

The assessee’s sole substantive grievance seeks to reverse both the lower authorities’ action disallowing its provision made for leave encashment of ₹21,31,610/- based on actuarial valuation on account of non-payment thereof. After arguing on the issue for some time, both the learned M/s S V Ghatalia & Associates Vs. DCIT, Cir-22, Kol. Page 2 representatives are ad idem that hon'ble jurisdictional high court’s decision in Exide Industries Ltd. Vs. Union of India (2007) 292 ITR 470 (Cal) quashing statutory provision itself to be unconstitutional stands stayed in hon'ble apex court after in Revenue’s SLP (CC) 12060/2008 admitted on 08.09.2008. We deem it appropriate in this peculiar factual backdrop that the Assessing Officer needs to re-adjudicate the impugned issue afresh as per law. His consequential adjudication would be kept in abeyance till the final outcome of issue pending before the hon'ble apex court hereinabove.