Union Of India vs M/S Exide Industries Ltd. on 24 April, 2020
40. We have considered the rival submissions as well a material
available on record. There is no dispute that this expenditure on
account of leave encashment has not been actually paid by the
assessee to the employees during the year under consideration
therefore, in view of the judgment of the Hon'ble Supreme Court in
the case of UOI vs Exide Industries Ltd. (Supra), the same is
allowable as deduction in the year of actually payment and not in
the year when the provisions is made. Therefore, this ground of the
assessee's appeal stand dismissed. However, the Assessing Officer is
directed to consider the claim of the assessee in the year when
actual payment is made towards the leave encashment."