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2013 (2) TMI 405 - HC - Income TaxMAT - Book Adjustments - Whether the phrase “ascertained liability” as used in Explanation (c) of Section 115J(1A) includes in its sweep, the entire amount set aside for payment of bonus or merely the actual payment of bonus? - Held that:- However, if it was only an estimation then it could not be regarded as an ascertained liability. Since, the position is not clear on facts AO should determine as to whether the computation of the provision for bonus was on the basis of Payment of Bonus Act, 1965. If so, the said provision would have to be treated as an ascertained liability. On the contrary, if he finds the provision for payment of bonus was not in accordance with the provisions of the Payment of Bonus Act, 1965 and it was merely an estimation then the original assessment of the assessing officer would hold. Rural Branches - provision for bad and doubtful debts, Reserve for bad and doubtful debt further provision & Reserve for bad & doubtful debts 5% of taxable income - Whether Tribunal was right in holding that the said items were unascertained liabilities and therefore added back to the book profits of the assessee by invoking Section 115-J(1A) read with Explanation (c) of the Act? - Held that:- Decided in favour of assessee as relying on Commissioner of Income Tax-IV, Delhi Versus M/s HCL Comnet Systems & Services Ltd. [2008 (9) TMI 18 - SUPREME COURT]
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