1990 (2) TMI 24

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..... of the respondent-assessee which was allowed by the Tribunal regarding leave encashment. The case of the petitioner was that it was a contingent liability, but the Tribunal has allowed the same by holding that the answer to the question is self-evident. In coming to this conclusion, the Tribunal has relied upon the decision of the Supreme Court in the case of Metal Box Co. of India Ltd. v. Their .....

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..... the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in allowing the claim of the assessee for the assessment year 1983-84 in respect of the provision of Rs. 2,06,541.30 made by the assessee being the leave encashment payable to its employees by ignoring the material fact that the provision was in the nature of a contingent liability which the asses .....

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