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2023 (1) TMI 20 - AT - Income TaxAssessment of trust - Disallowance of provision comprising of provision of gratuity and provision of leave encashment as application of income - DR submitted that there is no scientific basis for the estimate of the provisions made by the assessee for gratuity and leave encashment thus AO has rightly made the disallowance as the amounts in question represented unascertained liability - HELD THAT:- CIT(A) considered the above submission of the assessee and placing reliance on the decision of National Association of Software and services Companies[2012 (5) TMI 204 - DELHI HIGH COURT], Birla Janhit Trust [1990 (8) TMI 5 - CALCUTTA HIGH COURT], Trustees of H.E.H the Nizam’s Charitable Trust [1981 (1) TMI 52 - ANDHRA PRADESH HIGH COURT] and the decision of the Tribunal in assessee’s own case [2019 (3) TMI 2009 - ITAT DELHI] deleted the impugned disallowance. There is no substance in the contention of the Ld. DR that there is no scientific basis for the impugned provisions for gratuity and leave encashment which were made on the basis of actuarial valuation. No infirmity in the order of the Ld. CIT(A) who has applied the ratio decidendi of the decisions (supra) to the facts of the assessee’s case. We, therefore, confirm his findings in the absence of anything brought on record by the Revenue to enable us to take a different view. Appeal of the Revenue is dismissed.
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