Allowability of Provision for post-retirement medical benefit of employees

Rural Electrification Corporation Ltd. Vs DCIT (ITAT Delhi) The assessee debited a sum of Rs. 4,97,27,224 on account of provision for post-retirement medical benefit to its employees. According to the scheme, which was an optional scheme, available to an retired employee of REC against a one-time contribution of Rs. 1500. According to the assessee, the scheme was approved by the Board of Directors and backed by actual valuation for meeting out ascertained liability and it was not a contingent liability. The submission of the assessee was rejected by the assessing officer on the ground that lia...