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2019 (6) TMI 1287 - AT - Income TaxDisallowance of provision of leave encashment u/s 43B - HELD THAT:- AO/assessee shall follow the directions issued by the Hon’ble Supreme Court in the case of M/s.Exide Industries Ltd. & Anr. Vs. Union of India & Ors. [2009 (5) TMI 894 - SC ORDER] . When the question of law in the case of M/s.Exide Industries Ltd. & Anr. Vs. Union of India & Ors. becomes final, the AO shall amend the impugned orders conformably to such decisions as per Sec.158A of the Income Tax Act, 1961. - Appeals filed by the assessee are treated as partly allowed for statistical purposes. MAT computation - provision for gratuity and leave encashment should be added to book profits while computing the book profit u/s 115JB - HELD THAT:- Though the actual payment of gratuity may be made at a later point of time upon periodical release of the employees from service, it is provision having been made on actuarial basis, it cannot be stated to be an unascertained liability so as to add it back in terms of Clause (c) to Explanation 1 to Section 115JB It is not emanating from the assessment order as to whether the assessee has furnished the actuarial calculations of the ascertained liability for exclusion from adding the same to its book profit. The assessee is required to furnish before AO the actuarial calculations of the ascertained liabilities and after verification of the same; the AO may allow the assessee to exclude the same from the computation of book profit u/s 115JB. If the assessee chose not file the valuations, then the addition made by the AO stands sustained. Appeal filed by the assessee is allowed for statistical purposes. .
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