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Bharat Earth Movers vs Commissioner Of Income Tax, Karnataka on 9 August, 2000

27. We find for every year the reduction of expenses claimed is based on valuation determined as per actuarial valuation. Therefore, the ratio laid down by the Hon'ble Supreme Court in the case of Bharat Earth Movers v. CIT [245 ITR 428] squarely apply on the facts of the case in Hand. There is no dispute that the excess payment made in the prior years to Employees Gratuity Fund is now been adjusted against the allowability of ₹.5,08,60,000/- arising for the financial year 2005-06. The contention of the Ld. DR is that the assessee itself had added the amount, is not accepted as the same has been done by the assessee out of the abundant caution and has explained vide letters dated 08.10.2008 and 203.02.2010 and filed note dated 24.02.2010. Moreover, in the draft assessment order the Assessing Officer himself has allowed the claim of Page No. 20 ITA NOs. 4766, 4767 & 7010/MUM/2016 ITA NOs. 4787, 4788 & 7309/MUM/2016 (A.Ys. 2006-07, 2007-08 & 2008-09) The Hongkong & Shanghai Banking Corporation Ltd., ₹.5.08 Crores. Considering the facts in totality, we do not find any error or infirmity in the findings of the Ld. CIT(A), this Ground is dismissed.
Supreme Court of India Cites 5 - Cited by 480 - R C Lahoti - Full Document
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