9911796707
TMI Blog1985 (7) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 25,186 while computing the total of the assessee. 2. The assessee claimed leave with wages of RS. 53,991. The ITO held that it was a contingent liability and, therefore, not admissible as a deduction. He, however, noted that the assessee had made actual payments of Rs. 28,805 He allowed the claim to this extent and the balance of Rs. 25,186 was disallowed. The submissions of the assessee before the ITO were that the case of the assessee was not governed by the Factories Act but by an agreement between the management and the workeRs. It was stated that there was an understanding and contract with the workers for encasement of leave with wages. In support of this contention, certificates from some of workers that they have encased t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is covered against the assessee in its own case for the asst. yr. 1972-73 by the order of the Tribunal (Amritsar Bench) vide order dt. 21st Nov., 1977 in ITA No. 1329 of 1975-76. He further urged that certificates have not been filed by the assessee form all the workmen, He also relied on the decision of the Tribunal reported as Mohta Indudtries Ltd. vs. IAC (1985) 11 ITD 508 (Del). Ld. counsel for the assessee, on the other hand, contended that for the asst. yr. 1972-73, the Tribunal had not considered the full facts of the case in as much as, the decision of the Tribunal was based as if the provisions of Factories Act, 1948 were applicable and there was no agreement. He, therefore, urged, that the decision of the Tribunal needed to be r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment and this oral agreement was evidence by the certificates filed from the workeRs. The submission of the ld. Departmental Representaive was that certificates from all the workers had not been filed. In our opinion, his contention does not hold good on the face of the submission by the assessee before the ITO that if any further evidence was required that may be made known to the assessee but no such requisition was made by the ITO for furnishing evidence from all the workeRs. The CIT (A) has recorded a clear finding that the claim represented the contractual obligation on accrual basis as is evident from the extract reproduced above The ld. counsel for the assessee also filed in the paper book a copy of the order of the ITO for asst. yr. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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