Dismissing the appeal of the assessee the Court held that provision for leave encashment is held to be not allowable . Deduction is allowable on actual payment ,hence held to be not allowable . ( AY. 2006 -07)
Dhanalakshmi Bank Ltd. v. CIT (2019) 410 ITR 280/ 261 Taxman 521 / 177 DTR 48/ 308 CTR 484 (Ker) (HC) Editorial: SLP of the assessee is dismissed , Dhanalakshmi Bank Ltd. v. CIT ( 2019) 266 Taxman 185 (SC)
S. 43B : Deductions on actual payment – Provision for leave encashment- Not allowable as deduction .[ S.43B(f) ]