ANKIT INDIA LIMITED,KOLKATA vs. A.C.I.T., CC - 4(4), KOLKATA

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ITA 366/KOL/2026Status: DisposedITAT Kolkata20 May 2026AY 2020-20213 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the assessee had correctly shown the provision for gratuity below the line in its profit and loss account after paying tax on net profit. The tax was paid without claiming this amount as a deduction, and the provision was created in the audited balance sheet.

What were the facts?

The assessee, Ankit India Limited, appealed against the addition of ₹10,20,000/- confirmed by the CIT(A) regarding a provision for gratuity. The AO, CPC had made this addition in an intimation under Section 143(1).

What were the issues?

Whether the addition made by the AO, CPC in an intimation under Section 143(1) for a provision for gratuity was justified when the assessee had accounted for it correctly.

Which sections of the Income-tax Act were involved?

Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, KOLKATA

For Appellant: Shri Giridhar Dhalia, AR
For Respondent: Shri Ruchika Sharma, DR
Hearing: 28.04.2026Pronounced: 20.05.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals), Kolkata- 27, (hereinafter referred to as the “Ld. CIT(A)”] dated 19.11.2025 for the AY 2020-21.

2.

The only issue raised by the assessee is against the addition of ₹10,20,000/- confirmed by the ld. CIT (A) as made by the ld. AO, CPC in respect of provision for gratuity.

4.

In the result, the appeal of the assessee is allowed.

Order pronounced on 20.05.2026.

Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 20.05.2026 Sudip Sarkar, Sr.PS

Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//

Asst. Registrar Income Tax Appellate Tribunal, Kolkata

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