Deduction of provision for gratuity was allowable from book profits

KMF Infotech Ltd Vs DCIT (ITAT Bangalore) Conclusion : Provision for Gratuity was an ascertained liability eligible to be deducted from the net profit for the purpose of computing book profit u/s 115JB of the Income Tax Act. Held: The only  issue was whether “Provision for Gratuity” was an ascertained liability eligible to be deducted from the Net profit for the purpose of computing book profit u/s 115JB. It was held that the provision of gratuity in the assessee’s case was capable of being estimated with reasonable certainty and therefore, it was not a contingent or unascertained liabi...