2007 (4) TMI 215

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..... ld have imposed a liability on the assessee without giving any reasons?" The filing of paper books is dispensed with. We have heard learned counsel for the parties and we find from the assessment order dated February 26, 2002, that the Assessing Officer had included by way of deemed profit under section 115JA of the Income-tax Act, 1961, a provision for gratuity and a provision for leave encas .....

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..... iven to this request and on the merits of the case the Tribunal accepted the view of the first appellate authority by relying upon Bharat Earth Movers v. CIT [2000] 245 ITR 428 (SC). We are of the view that the Assessing Officer was under an obligation to give reasons for adding back the amount made for provision for gratuity and for leave encashment. The principles of natural justice require th .....

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..... e remand the matter back to the Assessing Officer with the direction that he should pass a reasoned order, after considering the actuarial valuation that may be produced by the assessee and after considering whether it is necessary or not to add back the provision for gratuity and for leave encashment and whether these liabilities are ascertained liabilities or unascertained liabilities. We make .....

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