TMI Blog2015 (9) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... tatives of the parties, we hereby set aside the order of the ld. CIT(A) and restore the issue to the file of AO for a limited purpose to verify the payment of the employees’ contribution. - Decided in favour of revenue for statistical purposes. Exclusion of provisions for gratuity for the computation of book profit u/s.115JB as directed by CIT(A) - Held that:- CIT(A) has referred the case of Bharat Earth Movers [2000 (8) TMI 4 - SUPREME Court] and certain decisions of the Tribunal and then came to the conclusion that the provision for gratuity was made on acturial valuation; hence, it was not an unascertained liability. In our opinion, there was no fallacy in the said verdict of learned CIT(A) because the assessee has demonstrated that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance of Employees contribution to PF paid beyond due date without appreciating the clear provision and the legislative intend, which is penal in nature, so far as the provisions of sec.36(1)(va) are concerned, the employees contribution is allowable only if the same is paid within due dates under the Provident Fund Act. 2. The appellant craves leave to add to amend or alter the above grounds as may be deemed necessary. Relief claimed in Appeal The order of the CIT(Appeals) on the above issue may be set aside and that of the Assessing Officer be restored. 3. Briefly stated facts are that the case of the assessee was reopened and the assessment u/s.143(3) of the Income Tax Act,1961 (hereinafter referred to as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was any belated payment of employee s contribution to Provident Fund. In view of this, addition of ₹ 119,62,01,051/- is deleted. 4.1. During the course of hearing, ld.Sr.DR stated that the matter needs verification at the end of the AO. The ld.counsel for the assessee has placed on record a chart. The ld.counsel for the assessee has no objection if the matter is restored back to the file of AO for a limited purpose of verification with regard to deposit of employees contribution to PF authorities. In view of the submissions of the authorized representatives of the parties, we hereby set aside the order of the ld. CIT(A) and restore the issue to the file of AO for a limited purpose to verify the payment of the employees con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07. Aggrieved by the order of the ld. CIT(A), the Revenue is now in appeal before us. 7.2. The ld.Sr.DR supported the order of the AO and submitted that the provisions for gratuity is not ascertained liability, therefore the ld. CIT(A) was not justified in deleting the addition. 7.3. On the contrary, ld.counsel for the assessee submitted that the issue is squarely covered in favour of the assessee by the decision of the Coordinate Bench (ITAT C Bench Ahmedabad) passed in assessee s own case in ITA No.1820/Ahd/2010 for AY 2006-07, dated 30/09/2013. 8. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the ld. CIT(A) has decided this issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n our opinion, there was no fallacy in the said verdict of learned CIT(A) because the assessee has demonstrated that the provision for gratuity was made on the basis of specific calculation and it was not an unascertained liability. In the case of Esar Motors Limited, 82 TTJ, [ Sic: EICHER MOTORS LTD] it was held by the respected co-ordinate Bench that the provision for gratuity based upon acturial valuation was not an unascertained liability which could be added back while computing the book profit for the purpose of Section 115JB. Respectfully following this decision, no interference is required in the view taken by learned CIT(A). This ground of the Revenue is, therefore, dismissed,. 8.3. Since the facts are identical to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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