2015 (9) TMI 743

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....lidated order for the sake of convenience. 2. First, we take up the Revenue's appeal in ITA No.897/Ahd/2012 for AY 2004-05. The Revenue has raised the following grounds of appeal:- 1. On the facts and in the circumstances of the case and in law, the ld. CIT(Appeals) erred in deleting the addition of Rs. 1,19,62,01,051/- on account of disallowance of Employees' contribution to PF paid beyond due date without appreciating the clear provision and the legislative intend, which is penal in nature, so far as the provisions of sec.36(1)(va) are concerned, the employees' contribution is allowable only if the same is paid within due dates under the Provident Fund Act. 2. The appellant craves leave to add to amend or alter the above grounds as ma....

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.....2. I have considered the matter, which is covered by decision of my learned predecessor CIT(A)-I, Baroda in appellant's case for AY 2006-07. Like in AY 2006-07, in the Chart filed by the appellant, closing balance (Col.No.9) at each month end during the year is in negative, due to which it could not be said that there was any belated payment of employee's contribution to Provident Fund. In view of this, addition of Rs. 119,62,01,051/- is deleted." 4.1. During the course of hearing, ld.Sr.DR stated that the matter needs verification at the end of the AO. The ld.counsel for the assessee has placed on record a chart. The ld.counsel for the assessee has no objection if the matter is restored back to the file of AO for a limited purpose of ve....

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....55,144/- into the book profit u/s.115JB of the Act. Against the said assessment order, assessee preferred an appeal before the ld. CIT(A), who after considering the submissions of the assessee allowed the appeal by following the decision of his predecessor passed for AY 2006-07. Aggrieved by the order of the ld. CIT(A), the Revenue is now in appeal before us. 7.2. The ld.Sr.DR supported the order of the AO and submitted that the provisions for gratuity is not ascertained liability, therefore the ld. CIT(A) was not justified in deleting the addition. 7.3. On the contrary, ld.counsel for the assessee submitted that the issue is squarely covered in favour of the assessee by the decision of the Coordinate Bench (ITAT "C" Bench Ahmedabad) pass....

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....has referred the case of Bharat Earth Movers, 245 ITR 428 and certain decisions of the Tribunal and then came to the conclusion that the provision for gratuity was made on acturial valuation; hence, it was not an unascertained liability. In our opinion, there was no fallacy in the said verdict of learned CIT(A) because the assessee has demonstrated that the provision for gratuity was made on the basis of specific calculation and it was not an unascertained liability. In the case of Esar Motors Limited, 82 TTJ, [ Sic: EICHER MOTORS LTD] it was held by the respected co-ordinate Bench that the provision for gratuity based upon acturial valuation was not an unascertained liability which could be added back while computing the book profit for th....