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16. Ground No.15 relates to deleting addition of Rs.1,04,41,07,743/- made under Section 115JB of the Act.

16.1 The AO made disallowance under the provision for gratuity in computing the book profit under Section 115JB of the Act. It was ITA Nos.3865, 4200, 7383, 7317 6690, 6594, 7316 & 7312/2011 submitted that provision for gratuity is an ascertained liability and as such it cannot be added back as a mere provision in computing book profit under Section 115JB of the Act. Provision of Section 115JB was explained before the learned CIT(A). It was submitted that gratuity is a form of retirement benefit to the employees. The cost of retirement benefits to an employer results from receiving services from the employees, who are entitled to receive such benefits. Consequently, the cost of retirement benefits is accounted for in the period during which these services are rendered. The liability towards leave encashment accrues from year to year, only the payment is made on cessation of employment. The liability, therefore, is in present though it will be discharged at a future date. It does not make any difference if the future date on which the liability shall have to be discharged is not certain. The liability can be estimated with reasonable certainty although it cannot be quantified with precision. It was also submitted that the company has made provision for leave encashment on the basis of actuarial valuation, which is as per Accounting Standard 15 issued by the Institute of Chartered Accountants of India. The relevant extracts from the Accounting Standard 15 was also supplied to the learned CIT(A). Reliance was placed on various case laws including decision of the Hon'ble Bombay High Court in the case of CIT Vs. Echjay Forgings (P) Ltd., reported in 251 ITR 15 and also on the decision of the Tribunal in the case of assessee itself i.e. from assessment year 1998-99 to 2005-06. After considering the submission ITA Nos.3865, 4200, 7383, 7317 6690, 6594, 7316 & 7312/2011 and perusing the material on record, learned CIT(A) found that the issue is covered by the decision of the Tribunal in the case of assessee itself. Accordingly, addition made under the provision of Section 115JB was deleted by the learned CIT(A).

16.2 After considering the order of the AO and learned CIT(A), we found that learned CIT(A) has allowed the issue in favour of the assessee following the decision of the Tribunal in case of assessee itself and the decision of the Hon'ble Bombay High Court n the case of Echjay Forgings (P) Ltd (supra). Accordingly, we confirm the order of CIT(A) on this issue also.

17. Ground Nos.16, 17 & 18 relate to deleting the addition of Rs.25,22,70,223/- relating to aircraft taken on finance lease without appreciating the fact in view of the provision of Section 43A, such foreign exchange loss has to be considered in the cost of the asset purchased.

25. The next issue is against deleting the addition for frequent flyers expense amounting to Rs.9,74,92,277/- in income computed under Section 115JB of the Act.

25.1 This issue was also involved for the assessment year 2006-07 and we have confirmed the order of the learned CIT(A) for assessment year 2006-07. Therefore, for the same reasoning, this ground of department fails and is hereby dismissed.

26. The next issue relates to deleting the addition on account of provision for gratuity amounting to Rs.4,36,86,984/- in the income computed under Section 115JB. This issue was also involved for assessment year 2006-07. The issue is also covered by the decision of the Hon'ble Bombay High Court in the case of CIT Vs. Echjay Forgings (P) Ltd., reported in 251 ITR 15. We have decided this issue in favour of the assessee. For the same reasoning, the ground of the department fails for the year under consideration.