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TMI Blog1984 (3) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of provision made by the firm for payment of leave with wages ? 2. Whether, on the facts and in the circumstances of the case, and on the basis of the materials on record, the Tribunal is right and reasonable in law and fact in holding that in the cashew circles in Kerala leave with wages is merely an additional wage available, to every worker and it has nothing to do with leave at all? " The assessees are partners of a firm called Indian Nut Products, Quilon, which is engaged in the business of manufacturing and exporting cashew kernels. For the assessment year 1974-75 relevant to the valuation date, December 31, 1973, the assessees claimed, while calculating their interests in the firm for the purpose of wealth-tax, deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 79 or any other section of the Factories Act which operates as a bar to the grant of leave with wages for workers in seasonal industries which from their nature cannot be carried on for 240 days in a year. It cannot, therefore, be held that the Tribunal had no jurisdiction to grant leave with wages irrespective of the total number of working days in a calendar year. " Although that was a case which arose from proceedings before the Industrial Tribunal, the dictum laid down by this court, as found by the Tribunal, gave rise to the custom or practice which has come to be accepted as a liability on the part of the management and a right vested in the workers. Irrespective of the technical aspects of s. 79 of the Factories Act, the work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had already been set apart towards leave with wages in respect of persons who worked during the year 1973. This is what the Tribunal said at the end of paragraph 6 of the order " On 31-12-1973, the last day of the accounting year, a further credit of Rs. 50,874.99 was made, being provision under this A/c for the year 1973, and this is carried forward to next year. The Tribunal concluded in paragraph 8 of the order: " in view of the discussion above, it would appear that leave with wages is merely an additional wage available to every worker and it has nothing to do with leave at all.....". Appearing for the Department, Shri N.R.K. Nair, refers to Chhaganlal Textile Mills (P.) Ltd. v. CIT [1966] 62 ITR 274 (MP) and CIT v. Rajkumar M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly evidenced the position which prevailed in the industry. That being the finding, so long as the practice is prevalent in the industry and accepted as obligatory in respect of amounts payable for the period during which the workers in question rendered service, those are amounts in the nature of debts which can be taken into account for computation under the W.T. Act. In the circumstances, we agree with the conclusion drawn by the Tribunal on the question of law arising in the case. Accordingly, we answer question No. 1 affirmatively, that is, in favour of the assessees and against the Department. In view of what we have stated in regard to question No. 1, it is unnecessary to answer question No. 2. Question No. 2 is not answered. A c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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