The Assessing Officer disallowed the claim of the assessee on ground that the liability to pay leave encashment as per the details provided by the assessee was due only in the year 2004 and onwards, as such, neither any liability had accrued nor discharged during the financial year 2001-02 and the process for establishment and registration of CLET was initiated and completed during the assessment year 2002-03 and was registered in the said year only. The Commissioner(Appeals) held that as there was no specific provision under Section 36 of the Act relating to contribution to leave encashment fund, the amount paid into the said fund by the assessee had no statutory recognition. The Tribunal held that section 43B was applicable only to those deductions, which otherwise were allowable under the Act and neither any liability had accrued to the assessee on account of leave encashment of employees in the year under appeal nor any payment was made to the employees during the said year. On appeal, the High Court held that the liability incurred by the assessee did not qualify the requirement of section 43B(f) and hence were rightly disallowed by the revenue. Order of Tribunal was affirmed.  (AY. 2002-03)