Deduction towards leave encashment fund admissible only when it is actually paid

H.P. State Civil Supplies Corporation Ltd. Vs ACIT (Himachal Pradesh High court) Himachal High Court held that as per section 43-B of the Income Tax Act deduction towards contribution to leave encashment fund is available only when the same is actually paid. Accordingly, appeal of the assessee dismissed. Facts- The assessee filed its Income Tax Return (ITR) for the assessment year 2002-03, declaring income of Rs. 1,20,64,680/-. The ITR was filed on 31.10.2002. Assessee claimed an expenses of Rs. 88,01,203/- in the profit and loss account, which included a sum of Rs. 45,00,000/-paid by the asse...