TMI Blog2015 (10) TMI 1506X X X X Extracts X X X X X X X X Extracts X X X X ..... we are unable to see any infirmity or any other valid reason to interfere with the impugned order and we upheld the same. Accordingly, sole ground of the Revenue being devoid of merits being dismissed. - Decided in favour of assessee. - ITA No. 5808/Del/2013 - - - Dated:- 20-5-2015 - S V Mehrotra, AM And C M Garg, JM,JJ. For the Appellant : Shri Ramesh Chandra, CIT DR Shri B R R Kumar, Sr. DR For the Respondent : Shri V P Gupta, Adv. ORDER Per Shri C M Garg, JM. This appeal has been preferred by the Revenue against the order of the Commissioner of Income Tax (Appeals)-X, dated 12/07/2013 in appeal no. 13/2011-12 for A.Y. 2008-09 and dated 21/08/2013 passed u/s 154 of the Act. 2. The sole ground raised by the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the present case the issue is squarely covered in favour of the assessee by the decision of Hon ble Supreme Court in the case of Rotork Controls Ltd. vs. CIT, 314 ITR 62 (SC). The ld. Counsel pointed out that the CIT(A) in the original order dated 12/07/2013 dismissed the ground no. 2 of the assessee ignoring the relevant facts of the case which was subsequently rectified by passing impugned order u/s 154 of the Act and the same is sustainable. 6. On careful consideration of above submissions from the order of the CIT(A) passed u/s 154 of the Act, we observe that the CIT(A) granted relief for the assessee with following observations: 2. It has been contended by the AR of the appellant that provision for gratuity (Rs. 49,01,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orities below and the ld. CIT(A) also recorded that the provision was computed on the basis of scientific methodology and also certified by the actuarial specialist. Under above noted facts, we respectfully follow the decision of Hon ble Supreme Court in the case of Rotork Controls India Pvt. Ltd. (supra), wherein it was held that a provision is a liability which can be measured only by using a substantial degree of estimation and the same is recognized when (a) an enterprise has a present obligation as a result of a past event; (b) it is probable that an outflow of resources will be required to settle the obligation, and (c) a reliable estimate can be made of the amount of the obligation and if these conditions are not met no provision can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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