{"id":966,"date":"2009-09-25T17:37:29","date_gmt":"2009-09-25T17:37:29","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=966"},"modified":"2009-09-25T17:37:29","modified_gmt":"2009-09-25T17:37:29","slug":"cit-vs-exide-industries-supreme-court","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/cit-vs-exide-industries-supreme-court\/","title":{"rendered":"CIT vs. Exide Industries (Supreme Court)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=84\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=84&varname2=exide_industries_s_43Bf_supreme_court.pdf'; }, 100)\" ><strong>Click here to download the judgement (exide_industries_s_43Bf_supreme_court.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong> Judgement holding s. 43B (f) (leave encashment) as unconstitutional stayed <\/strong><\/p>\n<p>S. 43B (f) was inserted by the Finance Act, 2001 w.e.f. 1.4.2002 to provide that any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee shall be allowed as a deduction only in the year of actual payment. <\/p>\n<p>The said amendment was enacted to supersede the judgement of the Supreme Court in <strong>Bharat Earth Movers vs. CIT<\/strong> 245 ITR 428 where it was held that even a provision for leave encashment was deductible on accrual basis. <\/p>\n<p>In <strong><a href=\"http:\/\/law.incometaxindia.gov.in\/DitTaxmann\/IncomeTaxActs\/2009ITAct\/%5B2007%5D164TAXMAN0009(CAL).htm\">Exide Industries Ltd vs. UOI<\/a><\/strong> 292 ITR 470, the Calcutta High Courts <strong>struck down<\/strong> 43B (f) as being <strong>arbitrary, unconscionable and de hors<\/strong> the apex Court decision in the case of <strong>BEML <\/strong>on the ground that the objects and reasons were silent as to why the amendment was effected and that the amendment was not consistent with s. 43B which was originally inserted to plug evasion of statutory liability.<\/p>\n<p>The said judgement of the Calcutta High Court has now been <strong>stayed <\/strong>by the Supreme Court and it has been clarified that the assessee must pay tax as if s. 43B (f) is on the statute though it is entitled to make a claim in its return.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The judgement of the Calcutta High Court in Exide Industries Ltd vs. UOI 292 ITR 470 holding that s. 43B (f) is arbitrary, unconscionable and de hors the apex Court decision in Bharat Earth Movers vs. CIT 245 ITR 428 has been stayed by the Supreme Court and it has been clarified that the assessee must pay tax as if s. 43B (f) is on the Statute Book though it is entitled to make a claim in its return.<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/cit-vs-exide-industries-supreme-court\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,7],"tags":[],"class_list":["post-966","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-supreme-court"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=966"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/966\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}