2004 (11) TMI 101 - HC - Income Tax

Liability towards leave with wages which was not paid during the year as the workers did not avail of the leave - Whether Tribunal was justified in deleting the addition of Rs. 1, 51, 552 made on account of liability towards leave with wages which was not paid during the year as the workers did not avail of the leave? - the question referred by the Tribunal is answered in favour of the assessee and against the Revenue.

Summary

The High Court of Punjab and Haryana ruled in favor of the assessee, deleting an addition of Rs. 1,51,552 for liability towards leave with wages not paid as workers did not avail leave. The decision was based on precedent cases Bharat Earth Movers v. CIT, CIT v. Oswal Woollen Mills Ltd., and CIT v. Oswal Woollen Mills Ltd. (No. 2).