2018 (12) TMI 471

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..... herefore, 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) TMI 16 - SUPREME COURT OF INDIA]. The Tribunal also placed reliance on the decision of the Gujrat High Court in case of Inox Leisure Limited [2013 (2) TMI 353 - GUJARAT HIGH .....

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..... e facts and circumstances of the case and in law, the 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 ₹ 4,91,77,8 .....

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..... on record with the assistance of learned counsel for the Revenue. We notice that the 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 Rotor .....

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..... to provisions made for meeting liabilities, other than ascertained liabilities have to be included while computing book profit. In other words if ascertained liabilities are there same cannot be added while computing alternate minimum tax. In the case under consideration, provisions made under the head gratuity, warranty and leave encashment are not contingent/unascertained and therefore same can .....

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..... sment of employees was unascertained liability and added it book profit. FAA upheld his order. In the appeal filed by the assessee, Tribunal reversed his order. Dismissing the appeal filed by the Revenue, Hon'ble High Court held that the Tribunal had rightly held that provision for leave encashment could not be considered contingent liability for computing bookprofit u/s 115JB of the Act. Resp .....

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