2021 (6) TMI 151

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....Act, 1961 (hereinafter referred to as 'the Act', for short) has been filed by the assessee against the order dated 28.04.2017 passed by the Income Tax Appellate Tribunal. The subject matter of the appeal pertains to Assessment Year 2008-09. The appeal was admitted by a Bench of this Court vide order dated 06.12.2017 on the following substantial questions of law: "a) Whether on the facts, in the circumstance and on the grounds and contentions urged, the Tribunal was right in merely upholding the findings of CIT(A) without independently examining the facts and material on record which demonstrates the scientific method adopted for ascertaining the transitional liability of Home Travel Concession (HTC) and Leave Fare Concession (LFC),....

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....,281/-. The Assessing Officer disallowed the provision created by the assessee on the ground that the same is contingent in nature. The provision was disallowed in respect of the following: a. Transitional liability on leave fare concession / home travel concession. b. Transitional liability on silver jubilee awards to employees and c. Transitional liability on resettlement expenses 3. The assessee thereupon filed an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals), by an order dated 27.12.2012, affirmed the order passed by the Assessing Officer. The assessee thereupon filed an appeal before the Income Tax Appellate Tribunal. The Tribunal, by an order dated 28.04.....

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....e submissions made before it. In the instant case, the Tribunal, in paragraphs 21 and 22, has held as under: "21. In this appeal, the dispute is regarding disallowance of transitional liability on Leave Fare concession (LFC), Home Travel Concession (HTC) are Rs. 3,01,77,794/-. Transitional liability towards silver jubilee awards are Rs. 1,44,45,000/- and transitional liability of various resettlement expenses Rs. 1,80,00,000/-. On these aspects, categorical finding has been given by the 1d CIT(A) on page No.14 of his order that the uncertainty which is introduced in these process will naturally reflect on the provision created by bank and rendered it uncertain. He has also given a finding that it may be noted that information perta....