Disallowance of provision for leave encashment unwarranted as liability was inherited due to restructuring

DCIT Vs Gujarat State Electricity Co. Ltd. (ITAT Ahmedabad)

ITAT Ahmedabad held that disallowance of provision for leave encashment unwarranted as provision was not debited to the profit & loss account of the assessee but was inherited by the assessee on account of restructuring exercise of GEB.

Facts- The sole issue raised by the Revenue vide the present appeal relates to the provision of leave encashment amounting to Rs.67,41,08,000/- disallowed by the AO in an order passed under section 147 of the Act, finding the same to be unpaid and invoking the pr

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