Allowing Leave encashment expense only on payment basis unconstitutional

HIGH COURT OF KERALA CIT vs.   Hindustan Latex Ltd. IT Appeal No. 64 of 2012 JUNE 7, 2012 JUDGMENT K. Vinod Chandran, J. The Revenue is in appeal and the respondent is a Government Company. The assessment of the company for the year 2005-06 was completed by Annexure A order. Inter alia, the assessee’s claim with respect to the payment of premium to Life Insurance Corporation for the policy under Group Leave Encashment Scheme was claimed as a deduction under Section 37 of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’). The claim was allowed t...