2018 (5) TMI 1899

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..... by ICAI - HELD THAT:- AO/assessee shall follow the directions issued by the Hon ble Supreme Court in the case of M/s.Exide Industries Ltd. Anr. Vs. Union of India Ors. [ 2009 (5) TMI 894 - SC ORDER] . When the question of law in the case of M/s.Exide Industries Ltd. Anr. Vs. Union of India Ors. becomes final, the AO shall amend the impugned orders conformably to such decisions as per Sec.158A of the Income Tax Act, 1961. - Appeals filed by the assessee are treated as partly allowed for statistical purposes.
Shri George Mathan And Shri S. Jayaraman, JJ. Appellant by: Mr.R.Vijayaraghavan, Adv. Respondent by: Mr.Srinivasa Rao, CIT ORDER PER BENCH: The assessee filed these appeals against the orders of the Commissioner of Income Ta .....

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..... Commissioner of Income Tax (Appeals) ought to have appreciated that the provision of leave encashment of ₹ 5,25,000/- was created based on actuarial valuation as per report obtained from consulting Actuary and that provision of Leave encashment was created in the books in line with AS-15 of employees benefits prescribed by ICAI. 2.2 The Commissioner of Income Tax (Appeals) ought to have followed the decision of the Chennai Tribunal in the case of Indian Overseas bank Vs. DCIT in ITA Nos.1803 and 1815/Mds/2011 dated 02.04.2013 (n para 6 at Page 11) 3. The Appellant craves Leave to adduce additional grounds at the time of hearing. 5. At the time of hearing, the Ld.AR invited our attention to the following portion of the order of .....

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..... payment must be allowed on actual payment basis and the relevant portion is reproduced as under: "6. Then coming to the second issue, it pertains to the provision made for leave encashment and the disallowance claimed was under Section 43B(f). As already stated above, the opinion of the CIT (Appeals) was set aside by the Tribunal in the light of the stay order of the judgment of the High Court of Calcutta in Excide Industries case (supra) and the SLP stated above is still pending. Therefore, the opinion of the Tribunal so far as disallowance claimed in respect of leave encashment under Section 43B(f) of the Act, as on today, the provision seems to be in force in the light of the stay order granted by the Apex court in the SLP. Therefore, .....

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