M/s Hewlett Packward (India) Software Operation Private Limited , Bangalore V. Assistant Commissioner of Income Tax Circle-3(1)(2), Bangalore

ITA 2866/BANG/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2021 (ITAT-BANGALORE)
• Duration Of Justice: 3 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 09-03-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 26-12-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

IT(TP)A NO. 2866/BANG/2017 PAGE 15 OF 16 20. THE NEXT ISSUE WHICH THE ASSESSEE HAS RAISED IN THE GROUNDS OF APPEAL IS WITH REGARD TO DISALLOWANCE OF A SUM OF RS.3,88,45,034/- ON ACCOUNT OF PROVISION FOR LEAVE ENCASHMENT. IT WAS SUBMITTED BY LEARNED COUNSEL FOR THE ASSESSEE THAT IN VIEW OF THE PROVISIONS OF SECTION 43B(F), THE PROVISION FOR LEAVE ENCASHMENT CANNOT BE ALLOWED AS A DEDUCTION. THE LEARNED COUNSEL FOR THE ASSESSEE HOWEVER SUBMITTED THAT TO THE EXTENT THAT THERE HAS BEEN ACTUAL PAYMENT OF LEAVE ENCASHMENT DURING THE RELEVANT PREVIOUS YEAR, THE DEDUCTION SHOULD BE ALLOWED. WE ARE OF THE VIEW THAT DEDUCTION TO THE EXTENT OF LEAVE ENCASHMENT AS ACTUALLY BEEN PAID SHOULD BE ALLOWED. WE DIRECT THE AO TO EXAMINE THE CLAIM OF THE ASSESSEE IN THIS REGARD AND ALLOW DEDUCTION ON THE BASIS OF THE ACTUAL PAYMENT. THE OTHER GROUNDS OF APPEAL ARE PURELY CONSEQUENTIAL AND DOES NOT REQUIRE ANY ADJUDICATION. 21. IN THE RESULT, APPEAL BY THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- BANGALORE, DATED: 10.03.2021. /NS/* ( B. R. BASKARAN ) ( N. V. VAS U DEVAN) ACCOUNTANT MEMBER VICE PRESIDENT IT(TP)A NO. 2866/BANG/2017 PAGE 16 OF 16 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.