The Tax Publishers2020 TaxPub(DT) 2226 (SC) : (2020) 269 TAXMAN 0014

INCOME TAX ACT, 1961

Section 261 Section 115JB

Where the department preferred SLP to appeal against the judgment of Bombay High Court in CIT v. ACC Ltd. [ITA No. 1658 of 2016, dt. 4-3-2019] : 2019 TaxPub(DT) 3119 (Bom-HC), whereby the High Court held that CIT(A) and Tribunal by concurrent orders deleted such additions made in respect of provision for Director's Retirement Benefit and in respect of excess expenditure on Voluntary Retirement in computation of book profit under section 115JB on the ground of the liabilities being ascertained contrary to what AO had held and on the ground that AO could not tinker with assessee's books of account while computing income under section 115JB by placing reliance on the decision of Supreme Court in case of Apollo Tyres Ltd. v. CIT (2002) 255 ITR 273 (SC) : 2002 TaxPub(DT0 1371 (SC) that the liabilities in question related to provisions made for directors' retirement benefits, liability arising out of voluntary retirement scheme, etc., the Supreme Court dismissed the SLP.

Appeal (Supreme Court) - Special leave petition - MAT - Book profit under section 115JB--Provision for Director's Retirement Benefit and excess expenditure on Voluntary Retirement--Computation of

Department preferred SLP to appeal against the judgment of Bombay High Court in CIT v. ACC Ltd. [ITA No. 1658 of 2016, dt. 4-3-2019] : 2019 TaxPub(DT) 3119 (Bom-HC), whereby the High Court held that CIT(A) and Tribunal by concurrent orders deleted such additions made in respect of provision for Director's Retirement Benefit and in respect of excess expenditure on Voluntary Retirement in computation of book profit under section 115JB on the ground of the liabilities being ascertained contrary to what AO had held and on the ground that AO could not tinker with assessee's books of account while computing income under section 115JB by placing reliance on the decision of Supreme Court in case of Apollo Tyres Ltd. v. CIT (2002) 255 ITR 273 (SC) : 2002 TaxPub(DT0 1371 (SC) that the liabilities in question related to provisions made for directors' retirement benefits, liability arising out of voluntary retirement scheme, etc. Held: The Supreme Court dismissed the SLP.

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