Dismissing the appeal of the revenue the Court held that, provision on account of leave encashment is not contingent liability. Allowable as deduction. Followed Metal Box Co. of India Ltd v. Their Workmen (1969) 73 ITR 53 (SC), Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC) (AY.1996-97)
PCIT v. Akzo Noble India Limited (No. 2) (2022) 440 ITR 190/ 286 Taxman 251 (Cal.)(HC)
S. 37(1) : Business expenditure-Provision on account of leave encashment-Not contingent liability-Allowable as deduction.