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TMI Blog2016 (8) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of Rs. 21,67,547/- by the CIT(A) as made by the AO for provisions of leave encashment. 4. The facts in brief are that during the course of assessment proceedings the AO noted that assessee has not paid Rs. 21,67,547/- provided on account of leave encashment in respect of leave at the credit of employees which were not allowable as not paid before the due date of filing the return of income and disallowed the same as per the provisions of section 43B(f) of the Act.The ld CIT(A) also upheld the order of CIT(A) on the ground that SLP has been admitted in the apex court on the issue of allowability of leave encashment. 5. At the outset, the ld.AR submitted before us that the matter may be restored back to the file of the AO and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment to recover the outstanding demands in case the appeal of the department is allowed by the Apex Court. The operative part of the decision is reproduced below : "9. In view of the observations of the Hon'ble Supreme Court, in our view, it will be proper to dispose of this appeal in the light of the order of the Hon'ble Supreme Court dated 08.05.2009 passed in the case of "CIT vs. Exide Industries Ltd." (supra). We therefore dispose of the present appeal with a direction that the assessee will pay the tax as if section 43B(f) is on the statute book, however, till the decision of the Hon'ble Supreme Court in the case of "CIT vs. Exide Industries Ltd." (supra), the Revenue will not recover the penalty and interest which may accrue till ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... para 4 of the assessment order. The assessee filed item wise client and investor wise details of compensation charged to the profit and loss account and from the said details it is apparent that compensation were paid for wrong processing of investment plan to dividend reinvestment instead of dividend payout , for non following of instruction of investor of switch from BCP retails dividend and so on and so forth. The AO did not agree with the proposition of the assessee and observed that the assessee was an asset management company for Birla Sunlight Mutual Funds for which the assessee has appointed a registered and transfer agent and it was nowhere agreed that the compensation would be paid by the fund manager and accordingly disallowed th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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