Provision for leave encashment and gratuity is allowable in book profit computed u/s 115JB

Fourrts (India) Labs Pvt. Ltd Vs ACIT (ITAT Chennai)

ITAT Chennai held that addition of provisions for leave encashment and provision for gratuity to book profit computed u/s 115JB unsustainable as the same is ascertained liability.

Facts- The assessee company is engaged in the business of manufacturing of harmless medicines. The assessment has been completed u/s. 143(3) by making various additions including additions towards sales promotion expenses u/s. 37(1) of the Act, towards freebies paid to Doc

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