ITAT Mumbai Allows Actuarial Provisions for Employee Benefit Schemes; Deletes Major Disallowances on Expense Provisions

Tata Motors Body Solutions Limited Vs DCIT (ITAT Mumbai) ITAT Mumbai Allows Actuarial Provisions for Employee Benefit Schemes; Deletes Major Disallowances on Expense Provisions In this significant ruling, the ITAT Mumbai held that provisions based on actuarial valuation for employee benefit schemes (BKY & Medicare) constitute ascertained liabilities and are allowable as deduction under Section 37(1). The Tribunal rejected the Revenue’s stand that such liabilities are contingent merely because payment arises on future events like death or disability. Relying on Bharat Earth Movers and Met...