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Provision for gratuity being an ascertained liability couldn't be considered while computing book profit for MAT

June 19, 2019[2019] 111 taxmann.com 350 (Kerala)/[2019] 414 ITR 338 (Kerala)
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INCOME TAX: Where assessee-company on finalisation of accounts in a particular previous year, computed profit and loss of each contract, up to stage at which it was completed, it could not be regarded as ascertained liability and, thus, revenue authorities were justified in adding back said amount while computing book profit under section 115J

INCOME TAX: Provision for gratuity is an ascertained liability falling outside clause (c) of Explanation to section 115J(1A) and, therefore, Assessing Officer cannot add back same while computing book profits under section 115J

INCOME TAX: Provision for bad and doubtful debts was an ascertained liability and, thus, Assessing Officer could not make any addition in respect of same insofar as computation of income under section 115J was concerned

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