2021 (12) TMI 105

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ;Tribunal') in ITA No.94/Kol/2012 for the assessment year 2005-06. The revenue has raised the following substantial questions of law for consideration: "a) Whether on the facts and in the circumstances of the case the Learned Income Tax Appellate Tribunal, "B" Bench Kolkata was justified in law in upholding the order of the Commissioner of Income Tax (Appeals) in deleting the disallowances of Rs. 31.76 lacs made by the Assessing Officer under Section 43B of Income Tax Act, 1961 on account of provision for leave encashment written back and Rs. 256.32 lacs on account of foreign exchange fluctuation, a contingent liability and its purported finding in this regard are arbitrary, unreasonable and perverse? b) Whether on the facts and i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... irst of the issues was whether the Commissioner of Income Tax (Appeals) (in short CIT(A)) was correct in deleting the disallowance made by the assessing officer under Section 43B of the Act on account of provisions for leave encashment written back. The tribunal had re-appreciated the factual position and examined the consistent practice followed by the assessee in obtaining valuation report for ascertaining the incremental leave encashment liability and after taking note of the entire facts, came to the conclusion that the final statements drawn by the assessee are in compliance with the statutory requirements, such as, the Companies Act and the computation of the total income has been done in accordance with the Act. Furthermore, the trib .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of law much less substantial question of law arising for consideration. The last ground was with regard to whether CIT(A) was correct in holding that the sale of factory land at Guindy, Chennai gave rise to capital gain and not to business profit. On this issue, the tribunal after noting the finding rendered by the assessing officer, as to how the CIT(A) reversed the same, on its part, re-examined the factual position and elaborately considered the matter, took note of the decision of the Hon'ble Supreme Court in CIT vs. G. Venkataswami Naidu reported in 35 ITR 594(SC) wherein the Hon'ble Supreme Court held that the question whether gain made out of purchase and sale of the land, is an accretion or capital profit which may depend .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X