2018 (12) TMI 471

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....peal against the judgment of Income Tax Appellate Tribunal dated 31st July, 2015. Following questions are presented for our consideration. "a) Whether on the facts and circumstances of the case and in law, the Hon'ble Tribunal was justified in deleting the disallowance of warranty provision made by AO while computing book profit Under section 115JB of the IT Act 1961? b) Whether on the f....

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....ed for non-removal of office objections. 3. Notwithstanding the manner of disposal of the Revenue's earlier appeal, we have perused the materials on record with the assistance of learned counsel for the Revenue. We notice that the Tribunal in the earlier judgment in a detailed consideration held that the warranty liability was ascertained liability and therefore, could not have been added w....

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....vides the list of the items that are to be included or excluded while computing book profit. As per explanation the amount or amounts set aside to provisions made for meeting liabilities, other than ascertained liabilities have to be included while computing book profit. In other words if ascertained liabilities are there same cannot be added while computing alternate minimum tax. In the case unde....

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.... with reference to the computation of book profit, in favour of the assessee. In that matter AO had held that provision towards leave encahsment of employees was unascertained liability and added it book profit. FAA upheld his order. In the appeal filed by the assessee, Tribunal reversed his order. Dismissing the appeal filed by the Revenue, Hon'ble High Court held that the Tribunal had rightl....