2009 (3) TMI 82

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....T The Judgment of the Court was delivered by P.P.S.JANARTHANA RAJA, J - The above Tax Case Appeal is filed by the Revenue against the order of the Income Tax Appellate Tribunal, Chennai 'B' Bench dated 27.06.2008 made in ITA No. 525(Mds.)/2008 by raising the following question of law: "Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right i....

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.... under Section 143(1) of the Income Tax Act. Thereafter, the assessing officer noticed from the return that the assessee had debited Profit and Loss Account with provision for warranty claims amounting to Rs.5,23,197/- and had not added back for the purpose of calculation of profits under Section 115JA. The said provision for expenditure was not allowable and there was reason to believe that the i....

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....ial to the interest of the revenue. The Commissioner, while enhancing the assessment, has directed the Assessing Officer to modify the assessment by disallowing and adding back the provision for doubtful debts and the provision for leave encashment in computing the book profits for the purpose of Section 115JA. Aggrieved by the same, the assessee had filed an appeal before the Income Tax Appellate....

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....iability of contingent nature and hence, the order of the Tribunal is not in accordance with law and the same has to be set aside. 4. Heard the learned counsel appearing for the revenue and perused the materials available on record. 5. It is seen that the issue involved in this appeal is squarely covered by the judgment of the Supreme Court in the case of BHARAT EARTH MOVERS VS. CIT reported....