https://www.taxtmi.com/caselaws?id=346074 The High Court considered the justification of remanding proceedings by the Income Tax Appellate Tribunal for disallowance under Section 14A. It was decided that if disallowance under Section 14A is necessary, the amount should not exceed the exempt income earned by the assessee during the relevant year. Additionally, the Court interpreted Explanation (c) of Section 115JB, emphasizing that provisions for unascertained liabilities should be added back to the book profit of the company, while provisions for ascertained liabilities do not require addition back. The Court held that a provision made for gratuity liability based on actuarial valuation method cannot be considered an unascertained liability. en-us Mon, 31 Jul 2017 00:00:00 +0530 Thu, 10 Aug 2017 17:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=346074 The High Court considered the justification of remanding proceedings by the Income Tax Appellate Tribunal for disallowance under Section 14A. It was decided that if disallowance under Section 14A is necessary, the amount should not exceed the exempt income earned by the assessee during the relevant year. Additionally, the Court interpreted Explanation (c) of Section 115JB, emphasizing that provisions for unascertained liabilities should be added back to the book profit of the company, while provisions for ascertained liabilities do not require addition back. The Court held that a provision made for gratuity liability based on actuarial valuation method cannot be considered an unascertained liability. Case-Laws Income Tax Mon, 31 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=346074