Supreme Court of India

Bharat Earth Movers v. Commissioner of Income Tax, Karnataka

Neutral citation
Reported as [2000] SUPP. 2 S.C.R. 295
Bench S.P. Bharucha, R.C. Lahoti and N. Santosh Hegde JJ.
Decided 9 August 2000

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

3 Supreme Court benches have cited this judgment.

What the Court ordered

Before parting we would like to observe that when this appeal came up for hearing on 24.3.1999 we felt some difficulty in proceeding to answer the question arising for decision because the orders of the authorities below and of the Tribunal did not indicate how the leave account was operated by the appellants and leave salary provision was made.

Judgment, page 6

From the headnote

Income Tax Act, 1961 : Section 37(/ ). Income Tax-Business liability-Deduction-Detennination of-AY 1978- 79-Comingent liability-Business liability had arisen in an accounting year although the liability had to be quantified and discharged at a future date­ Held: Such a liability is not a contingent liability and has to be deducted in the same accounting year in which it arose. Income Tax-Mercantile System of accounting-Contingent liability­ Business expenditure-Dedw:tion-AY 1978-79-Assessee-employer created a fund to meet the liability in respect of encashment of earned leave/vacation leave

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