Leave encashment provision not to be added in Book Profit for Section 115JB

Caprihans India Ltd. Vs DCIT (ITAT Mumbai) Conclusion: Provision for leave encashment being in the nature of an ascertained liability was to be reduced while computing the book profit under Section 115JB. Held: Assessee company had e-filed its return of income. While computing the “book profit” under Sec. 115JB, assessee company had added back the amount of the leave encashment provision. In the course of the assessment proceedings, AO inter alia observed that the provision for leave encashment was not to be allowed while computing the „book profit‟ under Sec.1 15JB. It was hel...