2012 (1) TMI 258 - AT - Income Tax

Summary

Issues involved:
The issues involved in this judgment are the allowability of provision for leave encashment u/s 43B of the Income Tax Act for assessment years 2006-07 and 2007-08.

Summary:

Assessment Year 2006-07:
The appeals filed by the assessee were against the orders of the ld. Commissioner of Income-tax (Appeals)-XXXVII, Kolkata dated 30.03.2010. The issue in this appeal was the allowability of provision for leave encashment u/s 43B. The assessee relied on a decision of the Hon'ble Kolkata High Court in the case of M/s. Exide Industries Ltd. The Assessing Officer did not accept the claim as the Department had preferred a Special Leave Petition before the Hon'ble Supreme Court, and a stay was granted. The Tribunal, in a similar case, had restored the matter to the Assessing Officer to decide in accordance with the decision of the Hon'ble Apex Court. The matter was thus restored back to the Assessing Officer, and the appeals were allowed for statistical purposes.

Assessment Year 2007-08:
The appeal filed by the assessee was against the order of the ld. Commissioner of Income-tax (Appeals)-XXXVI, Kolkata dated 14.03.2011. The issue in this appeal was also the allowability of provision for leave encashment u/s 43B. The facts were identical to the previous appeal, and the Tribunal decided to dispose of both appeals by a common order. Following the decision in a similar case, the Tribunal set aside the orders of the authorities below and restored the matter back to the file of the Assessing Officer for adjudication as per the decision of the Hon'ble Apex Court in the case of M/s. Exide Industries Ltd. The appeal was allowed for statistical purposes.

Separate Judgement:
No separate judgment was delivered by the judges in this case.