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TMI Blog2016 (3) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under section 143(3) read with section 263 of the Act. 2. The cross objections filed by the assessee were barred by limitation of 910 days. The assessee has filed an affidavit explaining the reason that due to change in the Counsel there was a delay in filing of cross objections and therefore prayed for condonation of delay. We have perused the reasons and are satisfied that there is a reasonable cause for the delay in filing of the cross objections by the assessee. Therefore in the interest of justice, we hereby condone the delay in filing of the cross objections. The petition for condonation of delay is allowed and the cross objections are admitted. Moreover, the cross objections filed by the assessee are only in support of the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. During the course of the assessment proceedings, it was observed by the learned Assessing Officer that the assessee had provided a sum of Rs. 68,42,481/- towards provision for gratuity for the assessment year 2001-02 and Rs. 53,82,440/- for the assessment year 2002-03 and Rs. 40,86,811/- on account of provision for bonus for the assessment year 2001-02. Since the assessee had not explained as to why the provisions made on account of gratuity and bonus was not added to the book profit for computing tax under section 115JB in terms of clause (c) of the Act, he added the same to the book profit of the assessee. On appeal, the learned Commissioner of Income Tax (Appeals) deleted the addition by observing as under:- Provision for gratuity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. The Hon'ble Bombay High Court in the case of Echjay Forgings Pvt. Ltd (supra) has held that the provision for payment of bonus to the employees in accordance with the Payment of Bonus Act is an ascertained liability and, therefore, the Tribunal was justified in holding that the same was not liable for inclusion while working out the book profit u/s 115J. Respectfully following the above decision, the above provision made has to be allowed .as deduction in computing the book profits. The ground is allowed." 6. Before us, learned Departmental Representative relied on the order of the learned Assessing Officer while as the learned Authorized Representative argued in support of the order of the learned Commissioner of Income Tax (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be profit & loss account of the assessee. He therefore directed the learned Assessing Officer to look into the matter. In the proceedings before the learned Assessing Officer, resulting from the directions of the learned CIT, the assessee did not furnish any details; hence the amount of Rs. 27,44,739/- was added to the income of the assessee while computing the book profit under section 115JB of the Act. Before the learned Commissioner of Income Tax (Appeals) the assessee had made the following submissions:- "Out of the insurance amount received, a sum of Rs. 5.54 lakhs was accounted as reduction from raw material consumed since it related to raw material. Similarly, a sum of Rs. 3.43 lakhs being the written down value of building and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove amount in computing the book profits. Further, when the appellant had finalized its accounts on the above basis and the same have been audited and adopted by the shareholders, the Assessing Officer cannot add any amounts unless it is provided for under various clauses of the Explanation to section 115JB(2). Reliance in this regard may be placed on the decision of Hon'ble Supreme Court in the case of Apollo Tyres Ltd. (supra). The above addition does not fall under any clauses of the Explanation-1 provided to section 115JB(2). Accordingly, this ground is allowed." 8. After hearing both the sides, we do not find any infirmity in the order of the learned Commissioner of Income Tax (Appeals). The assessee had received Rs. 1,40,29,209/- fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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