The ITAT Delhi addressed two key issues. Firstly, on ...

Disallowance of provision for leave encashment upheld u/s 43B(f) - deduction allowed on actual payment basis. Excise duty subsidy held as capital receipt not taxable.

Case Laws Income Tax

June 4, 2024

The ITAT Delhi addressed two key issues. Firstly, on disallowance of provision for leave encashment, the AO rejected the claim as it was not made through a revised return. The Tribunal held that deduction can only be allowed when actual payment is made u/s 43B(f) of the Act, citing a Supreme Court ruling. AO directed to verify actual payment date. Secondly, on taxability of excise duty subsidy, the Tribunal ruled it as capital receipt based on earlier decisions, holding it non-taxable. Additional ground raised by the assessee was allowed.

View Source

← Previous Next →

The ITAT Delhi addressed two key issues. Firstly, on ...

Disallowance of provision for leave encashment upheld u/s 43B(f) - deduction allowed on actual payment basis. Excise duty subsidy held as capital receipt not taxable.

Case Laws Income Tax

June 4, 2024

You may also like:

The ITAT addressed various issues including disallowance u/s 14A r.w.r.8D, where Revenue challenged deletion of disallowance made by AO. ITAT upheld CIT(A)'s decision,...

The ITAT upheld disallowance u/s 14A r.w.r.8D for expenditure on earning exempt income due to lack of fund utilization details. Dismissed appeal as assessee failed to...

Disallowance of the provisions made for leave encashment - Post 01.04.2001, deduction of any sum on account of payment towards employees leave encashment would be...

Provision made for leave salary allowed as deduction - HC

Disallowance of “Provision for leave travelling allowance” - the liability to pay would arise in the hands of the assessee only when an employee makes a claim. - order...

Disallowance of provision for gratuity and leave encashment - in case of trust, the meaning ‘applied’ need not be construed as ‘spent’. It includes the necessary...

The ITAT Ahmedabad ruled on various tax issues. It upheld that Foreign Exchange Fluctuation Gain is capital in nature. Deduction u/s 10B was denied as sales...

Provision for leave salary – The deduction u/s 43B(f) cannot be allowed on the making of a mere provision unless the amount is actually paid - AT

If the assessee has not made payment of leave encashment provision in the present year, deduction on account of that provision cannot be allowed as per provisions of...

Book profit adjustment - MAT u/s 115JB - provision for retirement benefits – As per this clause (f) of section 43B, the expenses of leave encashment are allowable on an...

Various issues related to allowability of expenses, deductions, transfer pricing adjustments, and other income tax matters for a pharmaceutical company. Key points are:...

Premium towards leave encashment - provision for leave encashment was held to be allowable if the same was based on a particular scheme proportionately with the...

MAT - Disallowance to computation of book profit u/s 115JB - Disallowance of leave encashment as unascertained liability - as the provision for leave encashment has been...

Disallowance of service tax u/s 43B - outstanding statutory liability - The assessee has not routed the outstanding service tax through its profit and loss account but...

Provision for sick leave liability - based on the basis of notional figures - such notional liability cannot be allowed as deduction - section 43B(f) is not applicable.

Quick Updates: