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TMI Blog2023 (8) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... of deduction towards provision for post-retirement medical benefits in respect of its serving and retired employees is albeit a provision in its books of account and not incurred during the relevant PY, yet this provision is based upon the actuarial certificate as prescribed in the relevant Accounting Standard (AS 15) of ICAI, required to be followed mandatorily in accordance with the accrual system of accounting as prescribed by the Companies Act. Accordingly, in view of the above as well as in due deference to the decision of Bharat Earth Movers [ 2000 (8) TMI 4 - SUPREME COURT] . the disallowance made on this issue in the impugned order is deleted correctly. Decided in favour of assessee. - Shri Shamim Yahya, Accountant Member An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , hence the same is dismissed as not pressed. 4. Apropos Ground No.3 : On this issue, ld. Counsel of the assessee submitted that the issue is squarely covered by the decision of ITAT in assessee s own case in ITA No.7245/Del/2019 for AY 2015-16 vide order dated 11.04.2023. 7. Per contra, ld. DR for the Revenue did not dispute this proposition. 8. We have heard both the parties and perused the record. We note that in the aforesaid order on similar ground, ITAT in the aforesaid order has held as under :- 9. The observation of the Ld.CIT(A) that the powers to entertain additional claim not made in the return of income is discretion of ITAT and not CIT(Appeals) is misplaced. In the additional ground assessee contended by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case and in law, the Ld. CIT(A) while giving relief to the assessee on disallowance of provision for Leave Salary, the CIT(A) has erred in not appreciating the fact that the assessee has claimed a provision of Rs. 2,37,10,141/- on account of post retirement medical benefits on the basis of actuarial valuation. The claim being merely a provision. 11. Apropos Ground No.2 : AO has made disallowance of Rs. 40,866/- under section 14A of the Income-tax Act, 1961 (for short 'the Act'). Upon assessee s appeal, on finding that no exempt income has been earned, ld. CIT (A) deleted the addition by referring to the decision of Hon ble Delhi High Court in the case of Cheminvest Ltd. vs. CIT-VI 126 DTR 289 and CIT vs. Holc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uture cost, post retirement, is expected to be evenly charged on scientific method to the current period so that the profits are properly determined for taxation purposes. If not provided for, a future year would be saddled with expenditure in respect of the service of employees, which were rendered during active employment i.e. pre-retirement. Further, during the hearing, the AR of the appellant relied on the decision of the apex court in Bharat Earth Movers vs. CIT [2000] 245 ITR 428 (SC), in this regard. 6.3 From the above, it is observed that the appellant's claim of deduction towards provision for post-retirement medical benefits in respect of its serving and retired employees is albeit a provision in its books of account and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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