TaxTMI 
TaxTMI 
TaxTMI 
2014 (1) TMI 1354
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....leting the disallowance of provision for warranty made by the A.O. 2. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in deleting the adjustments in book profits made by the A.O. on account of provision for warranty. 3. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in deleting the adjustments in book profits made by the AO on account of provision for gratuity. 4. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in deleting the adjustments in book profits made by the A.O. on account of provision for leave encashment. 5. The appellant prays that the order of the CIT(A) on....
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....the provision towards warranties represented accrued/ascertained liability.: 2. The appellant prays that the order of the CIT(A) on the above grounds set aside and that of the Assessing Officer be restored. 3. The appellant craves leave to amend, or alter any grounds or add a new ground, which may be necessary." Assessee-company is engaged in the business of manufacturing agricultural tractors, components. Details of dates of filing of returns, incomes returned, dates of assessment, assessed incomes, dates of orders of the CIT(A)can be summarised as under: Dt. of filing of Return Returned Income (Rs.) Date of assessment Assessed Income Dt. of orders of CIT(A) 2003-04 27.11.2003 (-) 26,75,48,290 1....
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....s delivered by the Supreme Court he allowed the issue in favour of the assessee. 2.2.Before us, Departmental Representative (DR) supported the order of the AO. Authorised Representative (AR) submitted that issue was covered in favour of the assessee by the order of the Hon'ble Delhi Court delivered in the case of Becton Dickinson India Pvt. Ltd. (83CCH 73). He also referred to the decision of Indian oil Tanking Ltd. of the E bench of the Mumbai Tribunal (120 ITD 237). 2.3.We have heard the rival submissions and perused the material before us.We find that the FAA had given a finding of fact that assessee was following a scientific method based on the past experience. We find that for arriving at the conclusion that a logical system was fol....
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....ovision made for warranty in respect of such sophisticated goods would be entitled to deduction from the gross receipts under section 37." In the case under consideration assessee had an obligation as result of past event and a reliable estimate could be made of the amount of obligation. Not only this historical trend indicated large number of goods were sold and in the sold item defect existed to some extent. So, we are of the opinion that the FAA had rightly allowed the appeal filed by the assessee-company. Ground no.1 is decided against the AO. 3. Next three Grounds of appeal (GOA-2,3and4) are about deleting the adjustments in book profits made by the AO on account of provision of warranty, provision for gratuity and provision for lea....
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.... was decided in favour of the asssessee by the decision of Indian oil Tanking Ltd.(supra),that Hon'ble High Court of Gujarat and Delhi have held that provision for gratuity was allowable u/s.115JB in the cases of Inox Leisure Ltd. (84 CCH 70) and ILPEA Paramount (P) Ltd. (336 ITR 54) respectively, that in the matter of H P Tourism Development Corporation Ltd. (35 taxmann.com.450) the issue has been decided in favour of the assessee by the Hon'ble high Court of HP. 3.3.We have heard the rival submissions and perused the material before us.We are aware that Section 115JB of the Act was incorporated in the statute with a specific purposes and it deals with special provision for payment of tax by certain companies. Explanation to section 2 pro....
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....he 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 book-profit u/s.115JB of the Act. Respectfully following the above judgments of the Hon'ble High Courts and the decision of coordinate Bench we decide Grounds of appeal no.2,3 and 4 against the AO. CO/251//Mum/12-AY.2003-04: 4. During the course of hearing before us, AR submitted that if the appeal filed by the AO was dismissed, CO filed by the assessee would become infructuous. While deciding the appeal filed by the AO, we have discussed the issues on merits and have decided all the grounds of appeal against him, therefore we are of the opinion that the g....