2007 (11) TMI 2

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....her the Income Tax Appellate Tribunal ( Tribunal ) was correct in law in deleting the addition of Rs.1,88,40,319/- made by the Assessing Officer ( AO ) on account of depreciation claimed in the current year by making retrospective change by the Assessee in the rates of depreciation while computing book profit under Section 115JA of the Income Tax Act, 1961 ( Act ) (b) Whether the Tribunal was c....

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....our reasons hereafter. 3. One question concerns a challenge to the decision of the Tribunal deleting the addition of Rs.37,67,226 made by the AO as a result of disallowing deduction of provident fund which was not paid by the Assessee before the due date but within the grace period as stipulated under the relevant statute.  Admittedly, this issue stands covered against the revenue and in f....

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....ontribution to an approved gratuity fund and therefore allowable as a deduction. The Tribunal accepted this contention. It held that Section 40A (7) (b) of the Act which enables a grant of a deduction in respect of a provision made towards contribution to an approved gratuity fund will override Section 43B of the Act which provides that such deduction will be allowed only in the year in which it i....

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....issioner of Income Tax [2000} 245 ITR 428. There the Supreme Court held that that if a business liability has definitely arisen in the accounting year, the deduction should be allowed although the liability may have to be quantified and discharged on a future date. Therefore in the facts of the present case, the said sum of Rs.16,05,869/- made as provision for payment of gratuity was an ascertaine....