ITAT Deletes ₹3.80 Lakh Leave Encashment Addition, Rules CPC Lacked Jurisdiction

Clinisys (India) Private Limited Vs DCIT (ITAT Kolkata) The Income Tax Appellate Tribunal (ITAT) of Kolkata, in the case of Clinisys (India) Private Limited vs. DCIT, has overturned a disallowance of Rs. 3,80,401 made by the tax authorities for the Assessment Year 2022-23. The dispute arose from the tax treatment of leave encashment payments. The assessee, Clinisys (India) Pvt. Ltd., had made a provision for leave encashment of Rs. 32,98,103 during the year and also paid Rs. 3,80,401 towards leave encashment for prior years. In its tax return, the company itself disallowed a portion of the pro...