Itxa/816/2011 Of The Commissioner Of Income Tax -Iv Pune v. U.b. Engineering Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.816 OF 2011 The Commissioner of Income Tax-IV, Pune..Appellant.V/s.U. B. Engineering Ltd...Respondent. Mr. Vimal Gupta, Sr. Advocate i/b. Padma Divakar, for the Appellant.Mr. Madhur Agarwal with Mr. A. K. Jasani, for the Respondent. P.C:- CORAM: J.P.DEVADHAR & M.S.SANKLECHA,JJ.DATE : 12[th] FEBRUARY, 2013. In this Appeal for the Assessment Year 1997-98 by the Revenue, the following question of law has been raised for our consideration:- “(a)Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in allowing the claim of provision for leave encashment of Rs.19,82,152/- as a deduction? (b)Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in allowing the provision for leave encashment of Rs.19,82,152/- in spite of the various decisions including the Hon'ble Supreme Court decision in the case of Dharmendra Taxtiles 306, ITR 277 where the ratio laid down is that unless the matter is referred back to the legislature, right or wrong, the Courts can not extend the provisions of the Act without legislative sanction, therefore, is the Tribunal justified in allowing the provisions as stated above?”. 2Since the Tribunal in the impugned order has allowed the claim of the Respondent-Assessee by following the decision of the Apex Court in the matte of Bharat Earth Movers v/s. Commissioner of Income-Tax, reported in 245 ITR 428, we see no reason to entertain the questions as framed by the Revenue. 3Accordingly, appeal is dismissed with no order as to costs. (M.S.SANKLECHA,J.) (J.P.DEVADHAR,J.)