Provisions made for Employees Short Term Benefit could not be allowed as deduction. Accounting Standard issued by the ICAI cannot override the provisions of Rule 5 of First Schedule to the Income-tax Act, and therefore, provisions made for Employees Short Term Benefit cannot be allowed as deduction. (AY. 2003-04 to 2010-11 )
ACIT v. United India Insurance Co. Ltd. (2018) 67 ITR 191 / 195 TTJ 65 (UO) (Chennai)(Trib.)
S. 37(1) : Business expenditure—Provision towards Employees Short Term Benefits–Held to be not allowable as deduction.