This case addresses the constitutional legitimacy of Section B f of the Income Tax Act which stipulates that deductions for leave encashment liabilities are permissible solely on an actual payment ... basis Exide Industries Limited contested this provision claiming it infringed Articles and g of the Constitution by differentiating leave encashment liabilities from other business expenses leading the Calcutta High Court to declare Section B f unconstitutional prompting an appeal from the Union of India and the Income Tax Department to the Supreme Court to maintain the provision