Union of India v. Exide Industries

425 ITR 1Supreme Court of India2020#695 most cited

What is Union of India v. Exide Industries authority for?

The provision for leave encashment is allowable as a deduction only on an actual payment basis under Section 43B(f) of the Income Tax Act, 1961. The Supreme Court upheld the constitutional validity of Section 43B(f).

146

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2020 to 2026.

Also referred to as

Union of India v. Exide Industries · Exide Industries SC · 425 ITR 1 · Section 43B(f) · Section 43B · leave encashment deduction · payment basis · approved gratuity fund · validity of Section 43B(f) · employee benefit expenses · actual payment · deduction allowability

Sections most often in play

Section 43BSection 14ASection 143(3)Section 263Section 10(20)Section 11Section 12ASection 12AA

Issues it is cited on

recognised provident fundsection 43b(f)approved gratuity fundsection 50bsection 40a(9)approved superannuation fundsection 211section 250ofsection 11 exemptionsection 80j(6a)section 43(b)wholly and exclusively for business

Judgments citing Union of India v. Exide Industries

Paradeep Phosphates Limited, Bhubaneswar vs. DCIT, Circle 1(2), Bhubaneswar

In the result, appeal of the assessee is partly allowed

ITA 103/CTK/2022[2011-12]Status: DisposedITAT Cuttack12 Jan 2023AY 2011-12

Bench: Before S/Shri George Mathan, Judicial & Arun Khodpia & Arun Khodpia & Arun Khodpiaassessment Year : 2011-12 Paradeep Phosphates Ltd., Paradeep Phosphates Ltd., Vs. Dy. Cit, Corporate Circle Dy. Cit, Corporate Circle 5Th Floor, Bayan Bhawan, Floor, Bayan Bhawan, 1(2),Bhubaneswar. 1(2),Bhubaneswar. J.N.Road, J.N.Road, Kharvel Kharvel Nagar, Nagar, Bhubaneswar. Bhubaneswar. Pan/Gir No. Pan/Gir No.Aabcp 3276 D (Appellant (Appellant) .. ( Respondent Respondent) Assessment Year : 2015-16 Paradeep Phosphates Ltd., Paradeep Phosphates Ltd., Vs. Pr. Cit, 5Th Floor, Bayan Bhawan, Floor, Bayan Bhawan, Bhubaneswar. Bhubaneswar. J.N.Road, J.N.Road, Kharvel Kharvel Nagar, Nagar, Bhubaneswar. Bhubaneswar. Pan/Gir No. Pan/Gir No.Aabcp 3276 D (Appellant (Appellant) .. ( Respondent Respondent) Assessee By : S/Shri B.K.Mohapatra/A.K.Sabat, Cas B.K.Mohapatra/A.K.Sabat, Cas Revenue By : Shri M.K.Gautam, , Cit Dr Date Of Hearing : 12 /01 01/2023 Date Of Pronouncement : 12/01 /01/2023 O R D E R Per Bench

For Appellant: S/Shri B.K.Mohapatra/A.K.Sabat, CAsFor Respondent: Shri M.K.Gautam
Section 263Section 43B

…provisions for leave encashment u/s.43B(f) of the Act without allowing actual expenditure. 4. It was fairly agreed by both the sides that the issue was squarely covered by the decision of the Hon’ble Supreme Court in the case of UOI Vs. Exide Industries Ltd. 425 ITR 1 (SC), wherein, it has been held that the leave encashment is liable to be allowed on actual payment. 5. We have considered the rival submissions. As it is noticed that the issue is squarely covered by the decision of Hon’ble Supreme Court in the case of Exide Industries Ltd (supra), the Assessing Officer is directed to grant the assessee the benef…

Royal Furnisher, Jammu vs. Assesing Officer Ward- 2 (2), Jammu

In the result appeal of the assessee bearing ITA No

ITA 54/ASR/2022[2018-19]Status: DisposedITAT Amritsar20 Dec 2022AY 2018-19

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 139(1)Section 143(1)Section 2(24)(x)Section 250oSection 36Section 36(1)(va)Section 43B

…1 (2) SCR 189.)" 47. Likewise, this court underlined the rule, regarding interpretation of taxing statutes, in CIT v. Calcutta Knitwears, Ludhiana [2014] 6 SCC 444. Recently, in Union of India v. Exide Industries Ltd. [2020] 116 taxmann.com 378/273 Taxman 189/425 ITR 1 (SC)/2020 (5) SCC 274 this court examined, and repelled a challenge to the constitutionality of section 43B, especially the provision requiring actual payment, in respect of leave encashment benefit of employees. The court observations in this regard are relevant: "20. Section 43B, however, is enacted to provide for deductions to be availed by the…

ACIT, Kochi vs. Federal Bank Ltd, Aluva

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 35/COCH/2020[2010-11]Status: DisposedITAT Cochin12 Dec 2022AY 2010-11

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

ACIT, Kochi vs. Federal Bank Ltd, Aluva

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 34/COCH/2020[2009-10]Status: DisposedITAT Cochin12 Dec 2022AY 2009-10

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

ACIT, Kochi vs. Federal Bank Ltd, Aluva

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 33/COCH/2020[2008-09]Status: DisposedITAT Cochin12 Dec 2022AY 2008-09

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

The ACIT, Kochi vs. M/S.Federal Bank Ltd, Kochi

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 311/COCH/2020[2014-15]Status: DisposedITAT Cochin12 Dec 2022AY 2014-15

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

The ACIT, Kochi vs. The Federal Bank Ltd, Ernakulam

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 310/COCH/2020[2008-09]Status: DisposedITAT Cochin12 Dec 2022AY 2008-09

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

The ACIT, Kochi vs. M/S.Federal Bank Ltd, Kochi

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 309/COCH/2020[2012-13]Status: DisposedITAT Cochin12 Dec 2022AY 2012-13

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

The Federal Bank Ltd, Aluva vs. The ACIT, Kochi

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 275/COCH/2020[2014-15]Status: DisposedITAT Cochin12 Dec 2022AY 2014-15

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

The Federal Bank Ltd, Aluva vs. The ACIT, Kochi

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 274/COCH/2020[2013-14]Status: DisposedITAT Cochin12 Dec 2022AY 2013-14

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

The Federal Bank Ltd, Aluva vs. The ACIT, Kochi

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 273/COCH/2020[2012-13]Status: DisposedITAT Cochin12 Dec 2022AY 2012-13

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

The Federal Bank Ltd, Aluva vs. The ACIT, Kochi

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 272/COCH/2020[2011-12]Status: DisposedITAT Cochin12 Dec 2022AY 2011-12

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

The Federal Bank Ltd, Aluva vs. The ACIT, Kochi

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 747/COCH/2019[2010-11]Status: DisposedITAT Cochin12 Dec 2022AY 2010-11

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

The Federal Bank Ltd, Aluva vs. The ACIT, Kochi

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 746/COCH/2019[2009-10]Status: DisposedITAT Cochin12 Dec 2022AY 2009-10

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

The Federal Bank Ltd, Aluva vs. The ACIT, Kochi

In the result, appeals of the Assessee and revenue for AY 2008-09 to 2010-

ITA 745/COCH/2019[2008-09]Status: DisposedITAT Cochin12 Dec 2022AY 2008-09

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

For Appellant: Shri Rajesekharan, CA and Shri K.Gopi, CAFor Respondent: Smt. J. M. Jamuna Devi, Sr. DR, Cochin
Section 147Section 14ASection 154

…to 2010-11. We hold and direct accordingly. 17. The next common issue in Assessee’s appeal 2011-12 to 2014-15 is with regard to disallowance of deduction on account of provision for leave encashment. The Hon’ble Supreme Court in the case of Exide Industries 116 Taxmann.com 378 (SC) on 24 April 2020, in Civil Appeal 3545/2009 overruled the decision of Calcutta High Court in the case of Exide Industries and upheld the constitutional validity for deduction of leave encashment on payment basis under section 43B(f) of the Act. In view of the Hon’ble Supreme Court decision, the deduction on account of provision for l…

Hp India Sales Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle-3(1)(1), Bangalore

In the result, ground 14 is allowed for statistical purposes

ITA 283/BANG/2022[2017-18]Status: DisposedITAT Bangalore07 Dec 2022AY 2017-18

Bench: Shri George George K, Jm & Shri Laxmi Prasad Sahu, Am It(Tp)A No.283/Bang/2022 : Asst.Year 2017-2018 M/S.Hp India Sales Private Ltd. The Assistant Commissioner No.24, Salarpuria Arena Of Income-Tax, Circle 3(1)(1) V. Bangalore. Hosur Main Road Adugodi Bengaluru – 560 030. Pan : Aaacc9862F. (Appellant) (Respondent) Appellant By : Sri.Ajay Vohra, Advocate Respondent By : Sri.Arun Kumar, Cit(Tp)-2-Dr Date Of Pronouncement : 07.12.2022 Date Of Hearing : 06.12.2022 O R D E R Per George George K, Jm : This Appeal At The Instance Of The Assessee Is Directed Against Final Assessment Order Dated 28.02.2022 Passed U/S 143(3) R.W.S. 144C(13) Of The I.T.Act. The Relevant Assessment Year Is 2017-2018. 2. The Assessee Has Raised 13 Grounds In Its Memorandum Of Appeal Dated 22.06.2022. The Learned Ar During The Course Of Hearing, Did Not Raise Any Specific Plea With Regard To Grounds 1 To 5, 10, 12 & 13 (Also Sub-Grounds), Hence, The Same Are Dismissed. The Surviving Grounds, Namely, Grounds 6 To 9, 11 & Its Sub-Grounds, Read As Follows:-

For Appellant: Sri.Ajay Vohra, AdvocateFor Respondent: Sri.Arun Kumar, CIT(TP)-2-DR
Section 143(3)Section 37Section 92B

…assessee did not claim any consequential relief for the claim on payment basis. It is submitted that the issue is now settled against the assessee in view of the judgment of the Hon’ble Apex Court in the case of UOI v. Exide Industries Ltd. reported in (2020) 425 ITR 1 (SC). 13. It is claimed by the assessee before the Tribunal that it did not make any claim for payment of leave encashment for Rs.1,46,50,125 owing to the claim made for the assessment year 2012-2013. It is submitted that the details of actual payment of Rs.1,46,50,125 are forming part of the disclosure in the audit report for the subject assessme…

Vinod Kumar Tandon, Allahabad vs. DCIT(CPC), Begaluru

In the result, appeal of the assessee is dismissed

ITA 29/ALLD/2022[2018-19]Status: DisposedITAT Allahabad22 Nov 2022AY 2018-19
For Appellant: NoneFor Respondent: Sh. A.K. Singh, Sr. D.R
Section 139(1)Section 143(1)Section 143(1)(a)Section 234BSection 36(1)(va)Section 43B

…1 (2) SCR 189.)" 47. Likewise, this court underlined the rule, regarding interpretation of taxing statutes, in CIT v. Calcutta Knitwears, Ludhiana [2014] 6 SCC 444. Recently, in Union of India v. Exide Industries Ltd. [2020] 116 taxmann.com 378/273 Taxman 189/425 ITR 1 (SC)/2020 (5) SCC 274 this court examined, and repelled a challenge to the constitutionality of section 43B, especially the provision requiring actual payment, in respect of leave encashment benefit of employees. The court observations in this regard are relevant: "20. Section 43B, however, is enacted to provide for deductions to be availed by the…

Birla Corporation Ltd., Kolkata vs. DCIT, Cir.-6(1), Kolkata

In the result, appeals filed by the Revenue for AYs 2011-12 &

ITA 495/KOL/2020[2012-13]Status: DisposedITAT Kolkata31 Oct 2022AY 2012-13

Bench: Sri Rajpal Yadav & Dr. Manish Borad

Section 143(3)Section 250Section 37(1)Section 40Section 43B

…ourt by rectifying the assessment once the judgment was rendered by the Hon’ble Supreme Court. The assessee’s ground of appeal was dismissed subject to the said observation. 22.2. The Hon’ble Supreme Court in Union of India v. Exide Industries Limited, (2020) 425 ITR 1 (SC) upheld clause (f) of Section 43B of the Act as constitutionally valid (pages 220 – 249 of the Compilation of Case Laws). Therefore, in view of the judgment of the Hon’ble Supreme Court, deduction in respect of leave encashment is available only in the year of actual payment. It is then submitted by ld. Counsel for the assessee that ld. AO may…

Birla Corporation Limited, Kolkata vs. DCIT, Cir-6(1), Kolkata

In the result, appeals filed by the Revenue for AYs 2011-12 &

ITA 494/KOL/2020[2011-12]Status: DisposedITAT Kolkata31 Oct 2022AY 2011-12

Bench: Sri Rajpal Yadav & Dr. Manish Borad

Section 143(3)Section 250Section 37(1)Section 40Section 43B

…ourt by rectifying the assessment once the judgment was rendered by the Hon’ble Supreme Court. The assessee’s ground of appeal was dismissed subject to the said observation. 22.2. The Hon’ble Supreme Court in Union of India v. Exide Industries Limited, (2020) 425 ITR 1 (SC) upheld clause (f) of Section 43B of the Act as constitutionally valid (pages 220 – 249 of the Compilation of Case Laws). Therefore, in view of the judgment of the Hon’ble Supreme Court, deduction in respect of leave encashment is available only in the year of actual payment. It is then submitted by ld. Counsel for the assessee that ld. AO may…

DCIT, Circle - 6(1), Kolkata vs. M/S. Birla Corporation Ltd., Kolkata

In the result, appeals filed by the Revenue for AYs 2011-12 &

ITA 2112/KOL/2018[2012-13]Status: DisposedITAT Kolkata31 Oct 2022AY 2012-13

Bench: Sri Rajpal Yadav & Dr. Manish Borad

Section 143(3)Section 250Section 37(1)Section 40Section 43B

…ourt by rectifying the assessment once the judgment was rendered by the Hon’ble Supreme Court. The assessee’s ground of appeal was dismissed subject to the said observation. 22.2. The Hon’ble Supreme Court in Union of India v. Exide Industries Limited, (2020) 425 ITR 1 (SC) upheld clause (f) of Section 43B of the Act as constitutionally valid (pages 220 – 249 of the Compilation of Case Laws). Therefore, in view of the judgment of the Hon’ble Supreme Court, deduction in respect of leave encashment is available only in the year of actual payment. It is then submitted by ld. Counsel for the assessee that ld. AO may…