The question raised by Prasad Apte was: Whether PL days will be counted as working days? My answer was YES, because only by treating the days of absence as working days can the payroll pay for the days of leave. Yes, for the purpose of earning leaves in the next year, these days will not be counted. Why? Because an employee EARNS leave only for the days they remained physically present for work.
The second part of my answer was that for all benefits, the PL days will be counted as working days. YES, when you calculate 240 days for eligibility for next year's PL, the PL availed will be counted as days worked. For deciding gratuity, the PL days will be considered as days worked. For deciding retrenchment and lay off wages, the PL availed days will be counted as days worked.
@dksrivastava I did not post the question, but I only posted my views.