2019 (11) TMI 1103

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.... the ground regarding addition of Rs. 16,95,83,384/- u/s 369(1)(viia) of the Act even when no such addition was made in the order u/s 147/143(3) of the I.T. Act dated 20.3.2016. 2. Whether in the facts and in the circumstances of the case, Ld. CIT(A) was justified in deleting addition of Rs. 47,90,498/- on account of the excess provision of gratuity and leave encashment. 3. Whether in the facts and in the circumstances of the case, Ld. CIT(A) was justified in sustaining only Rs. 48,790/- out of addition of Rs. 2,10,395/- u/s 40(a)(ia) in view of findings in assessment order. 4. Whether in the facts and in the circumstances of the case, Ld. CIT(A) was justified in deleting the addition of Rs. 5,89,91,207/- on accou....

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....nst this, the revenue is in present appeal. 3. Ground No.1 of the revenue's appeal reads as under: 1. Whether in the facts and in the circumstances of the case, Ld. CIT(A) was justified in admitting and adjudicating the ground regarding addition of Rs. 16,95,83,384/- u/s 369(1)(viia) of the Act even when no such addition was made in the order u/s 147/143(3) of the I.T. Act dated 20.3.2016. 4. It is noticed that the assessee had taken a ground before Ld. CIT(A) i.e. ground No.2, which is reproduced as under: "The Ld. A.O. has erred in disallowing the claim of the assessee made of Rs. 16,95,85,384/- u/s 36(1)(vii)(a)." 5. This ground of the assessee's appeal was dismissed by the Ld. CIT(A) in para 4.2.5 by observing....

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.... in reducing the addition. 13. We find that Ld. CIT(A) has followed the judicial pronouncements applicable on the facts of the present case, therefore, the view of the Ld. CIT(A) is affirmed as the revenue failed to bring any judgement of the Hon'ble jurisdictional High Court on this issue. 14. Ground No.4 is against deleting the addition of Rs. 5,89,91,207/- on account of provision of gratuity and leave encashment. 15. Ld. CIT(DR) supported the order of the A.O. and submitted that Ld. CIT(A) has mechanically allowed the claim of the assessee without verifying the actual payments. Ld. D.R. submitted that the Ld. CIT(A) ought to have confirmed these additions. 16. On the contrary, Ld. Counsel for the assessee reiterated the s....

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....f the authorities below. Ld. CIT(A) has allowed the deduction by observing as under: "The appellant submitted that the expense has been debited on the basis of actual payment. The appellant has shown pre existing liability in the F.Y. 2006-07 and F.Y. 2007-08, which has been disallowed in the earlier year. The appellant has made the said payment during the year under consideration and the same is allowable u/s 43B of the Income Tax Act. Therefore, the A.O. is not justified in making the addition. " 18. For the sake of clarity, section 43B(b) of the Act is reproduced as under: "43B(b) any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any....