The AO disallowed the payment of leave encashment made before due date of filling of return of income, on the ground that, no evidence was filed . Tribunal held that the requirement of furnishing evidence of details of payment of leave encashment is only a directory and not mandatory, therefore no disallowance can be made. (AY .2006 – 2007 to 2008-2009)
Dy. CIT v. Mcnally Bharat Engineering Co. Ltd. (2018) 191 TTJ 822 (Kol)(Trib.)
S.43B: Deductions on actual payment- Payment of Leave encashment made before due date of filling of return of income is allowable as deduction .[ S.139(1) ]