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2016 (4) TMI 714 - HC - Income TaxMAT computation - whether Tribunal was justified not appreciating the undisputed fact that the unascertained liability cannot be excluded in the provision of gratuity for the computation of book profit under section 115JB? - Held that - The controversy involved in the present case stands concluded by a decision of this court in the case of Deputy Commissioner of Income Tax v. Inox Leisure Limited, (2013 (2) TMI 353 - GUJARAT HIGH COURT ) in favour of the assessee and against the revenue
Issues:
Challenge to the order of the Income Tax Appellate Tribunal regarding the computation of book profit under section 115JB for assessment year 2007-08. Analysis: The appellant revenue challenged the order of the Income Tax Appellate Tribunal, Ahmedabad Bench 'D', regarding the exclusion of unascertained liability in the provision of gratuity for the computation of book profit under section 115JB. The appellant proposed a substantial question of law questioning the Tribunal's decision. The appellant relied on a previous decision of the court in the case of Deputy Commissioner of Income Tax v. Inox Leisure Limited, where the court ruled in favor of the assessee and against the revenue. The appellant pointed out that the revenue had filed a special leave petition before the Supreme Court against the said judgment, which was pending consideration. The court heard arguments from both sides and noted that the controversy in the present case was already settled by the decision in the case of Deputy Commissioner of Income Tax v. Inox Leisure Limited in favor of the assessee. Since it was an admitted position that the issue was already decided in favor of the assessee, the court found no need to delve into the facts and contentions in detail. The court emphasized that based on the reasons recorded in the earlier decision, the present appeal did not raise any new question of law requiring intervention. Consequently, the court dismissed the appeal, upholding the decision of the Income Tax Appellate Tribunal. In conclusion, the High Court of Gujarat upheld the decision of the Income Tax Appellate Tribunal, dismissing the appeal by the appellant revenue challenging the computation of book profit under section 115JB for the assessment year 2007-08. The court relied on a previous judgment in a similar case where the issue was decided in favor of the assessee, emphasizing that the present appeal did not raise any new legal questions warranting interference.
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