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2016 (3) TMI 319 - AT - Income TaxProvision for gratuity & bonus - Held that:- As explained by learned Authorized Representative both provision for gratuity and bonus are statutory obligation which has been incurred by the assessee and since the assessee is following mercantile system of accounting the same has to be charged to the profit and loss account of the assessee during the relevant previous year in which such obligation has resulted. The learned Commissioner of Income Tax (Appeals) after placing reliance on the decisions cited by the learned Authorized Representative in the case of M/s. Echjay Forgings Pvt. Ltd. (2001 (2) TMI 56 - BOMBAY High Court) and in the case of Apollo Tyres Ltd. Vs. CIT (2002 (5) TMI 5 - SUPREME Court ) has allowed the appeal of the assessee. Therefore, we do not find it necessary to interfere with the order of the learned Commissioner of Income Tax (Appeals) on this issue. - Decided against revenue Insurance claim received - Held that:- The assessee had received ₹ 1,40,29,209/- from the insurance company towards loss of its assets. The written down value of these assets which works out to ₹ 27,44,739/- has to be necessarily reduced from the amount of ₹ 1,40,29,209/- to compute the net income received from such claim which only is to be credited to the profit & loss account of the assessee. Accordingly, the assessee has rightly reduced such amount and the balance amount of ₹ 1,12,84,470/- is credited to its profit and loss account which is in order. Therefore, we do not find it necessary to interfere with the orders of learned Commissioner of Income Tax (Appeals) on this issue.- Decided against revenue
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