We have heard Mrs. Mauna M. Bhatt, learned counsel for the Revenue in this Tax Appeal. This appeal has been filed on the following proposed question of law:
“Whether on the facts and in the circumstances of the case, the Appellant Tribunal was right in law in holding that the amount set aside by the assessee to provide for meeting liabilities other than ascertained liabilities was not required to be added back while computing the book profit u/s.115JB of the Act?”
The Tribunal by relying on the decision of the Apex Court in Bharat Earth Movers (245 ITR 428) has held that the leave encashment and provision for gratuity determined on the basis of actuarial valuations fall outside the scope of the provisions of clause (c) of the Explanation 1 to Section 115JB of the Act. We are in agreement with the view taken by the Tribunal. We do not find that any substantial question of law arises in this appeal. This Tax Appeal fails and is accordingly dismissed.
(V.M. SAHAI, J.) (N.V. ANJARIA, J.) [SN DEVU PPS]