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2018 (12) TMI 471

MAT computation - Tribunal deleting the disallowance of warranty provision made by AO while computing book profit Under section 115JB - Held that:- Tribunal in the earlier judgment in a detailed consideration held that the warranty liability was ascertained liability and therefore, could not have been added while computing the assessee's book profit. In the process, the Tribunal referred to and relied upon the judgment of Supreme Court in case of Rotork Controls India Private Limited [2009 (5) T .....

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e Hon'ble Tribunal was justified in deleting the disallowance of warranty provision made by AO while computing book profit Under section 115JB of the IT Act 1961? b) Whether on the facts and circumstances of the case and in law, the Hon'ble Tribunal was justified in deleting the disallowance of warranty amounting to ₹ 4,91,77,891/made by the AO while computing the deduction under section 115JB. 2. The issue pertains to the disallowance of warranty provision made by the Assessing Of .....

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f Supreme Court in case of Rotork Controls India Private Limited 314 ITR 62. The Tribunal also placed reliance on the decision of the Gujrat High Court in case of Inox Leisure Limited 84 CCH 70 and the decision of Himachal Pradesh High Court in case of H P Tourism Development Corporation Ltd. 35 taxmann.com 450. In the concluding portion the Tribunal had in the earlier year observed as under : 3.3 We have heard the rival submissions and perused the material before us. We are aware that Section 1 .....

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t. Dealing with the issue of provision for gratuity to be considered for MAT purposes, Hon'ble Gujarat HC in the case of Inox Leisure Ltd.(supra) has held that addition of gratuity as unascertained liability under clause (c) to explanation 1 to section 115JB was not warranted. We further find that the Hon'ble HP High Court has decided the issue, of leave encashment with reference to the computation of book profit, in favour of the assessee. In that matter AO had held that provision towar .....

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