Exgratia Provision Sent Back to AO; Double Disallowance on Leave Encashment Deleted

Ecotech IT Solutions Private Limited Vs DCIT (ITAT Pune)

Assessee challenged two disallowances—₹88,00,000 provision for Exgratia/Long-Term Service Award & ₹1,20,565 provision for leave encashment.

Tribunal noted that although Assessee relied on Bharat Earth Movers to treat the exgratia provision as an ascertained liability, the employee-wise computation for FY 2021-22 was not on record, as confirmed during hearing.  Since details for only later year (FY 2023-24) were furnished, Tribunal held that the claim can be allowed only after Assessee demonstrates p

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