EXIDE INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) SECTION 43B(f) is called in question in this appeal. The said section is quoted below:

(2.) CHAPTER IV of the IT Act, 1961 (hereinafter referred to as the said 'Act of 1961') deals with computation of business income. Section 36 provides for allowable deductions while computing the income referred to in Section 28. Under Sub -section (1)(ii) of Section 36 any sum paid to an employee as bonus or commission for services rendered is available for deduction where such sum would not have been payable to him as profits or dividend if it had not been paid as bonus or commission. Under Clause (f) of Section 43B any sum payable by the employer/assessee to its employees as leave encashment shall be available for deduction only in computing the income referred to in Section 28 of that previous year in which such sum is actually paid by the employer to its employees.

(3.) CHALLENGING the said amendment, the appellant filed a writ petition before the learned single Judge. His Lordship dismissed the writ petition, inter alia, holding as follows: