Actuarial gratuity gains in OCI not taxable; adjustment under section 143(1)(a) deleted, interest under 244A recomputed

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ITAT allowed the appeal of Assessee A, holding that the adjustment u/s 143(1)(a) on account of alleged mismatch with the tax audit report, relating to gain on actuarial valuation of gratuity liability routed through Other Comprehensive Income, was unsustainable. ITAT observed that actuarial gains/losses recognized under Other Comprehensive Income do not affect taxable income, as they are not routed through the Profit & Loss A/c, and Assessee A follows the payment basis for claiming deduction of gratuity. Consequently, the addition made in intimation u/s 143(1)(a) was directed to be deleted. On the issue of short grant of interest u/s 244A, ITAT directed the AO to recompute interest up to the actual date of refund payment.....