Leave Encashment Payment Made After Financial Year not Deductible under Income Tax Act Without Accrued Liability: Himachal Pradesh HC [Read Order]

The Court noted that the assessee followed the cash system of accounting and had not shown any accrued liability in the relevant year
By Sneha Sukumaran Mullakkal - On April 8, 2025 3:00 pm - 3 mins read
Leave Encashment - Income Tax Deduction - Accrued Liability - taxscan

The High Court of Himachal Pradesh,ruled that leave encashment payments made after the end of the financial year cannot be claimed as a deduction under the Income Tax Act,1961 unless the liability had actually accrued during that year. Stay Updated with the Latest Audit Report Formats & Audit Trials Requirements! Click here H.P. State Civil…

Your free access to Taxscan has Expired

To read the article, get a premium account.

Taxscan Premium

Why should you subscribe?
  • Enjoy our website without interruptions from advertisements
  • Receive Daily newsletters
  • Receive realtime Telegram/Whatsapp news updates
  • Download original Judgements / Order / Notifications / Circulars, etc
  • Enjoy exclusive entry fees to Simplified series. (Webinars, Seminars, masterclasses, etc.)
  ₹2299 + GST for 1 year

Subscribe Now

Already a member? Log in here

Topics

taxscan-loader