IN INCOME TAX APPELLATE TRIBUNAL B BENCH, KOLKATA Before: Shri Waseem Ahmed, Accountant Member and Shri S.S.Viswanethra Ravi, Judicial Member I.T.A. No. 730/KOL/2015 A.Y: 2010-11 Allahabad Bank Vs. Principal Commissioner PAN: AABCC 2903N of Income-tax, Kolkata-2 (Appellant) (Respondent) Appearances by: Shri Pijush Dey, FCA, Ld. AR for assessee Shri Abhijit Datta, JCIT, Ld. Sr. DR Date of hearing : 26-07-2016 Date of pronouncement : 19-10-2016 O R D E R Shri S.S. Viswanethra Ravi, JM: This appeal by Assessee is directed against order dated 25-03-2015 passed by Prl. Commissioner of Income Tax, Kolkata-2 u/s.263 of Act for assessment year 2010-11. 2. In this appeal, Assessee has raised following effective ground:- 1. Th t, on f ac t s as w ell s on l aw , t h e L e rn ed P rin c ip al Co mm is si on e r o f In c om e T ax , K o l - 2 h as er r e d in c on si d e r in g t h e s s es s m en t o r d e r p s s ed b y t h e Le rn ed D ep u t y CI T, Ci rc l e - 6, K ol as e r r on e ou s d p r ej u d ici al t o t h e in t er e s t of R e v en u e on t h e g r ou n d t h at p r ov i si on of R s .15 3 c r o re s t o wa rd s es t im at ed l iab ili t y on wa g e rr ea r s m ad e d u rin g t h e p r e vi ou s y ea r 20 09- 10 h ad b e en all o w e d s d ed u ct i on . ITA No. 730/Kol/15 Allahabad Bank 1 2. Th t, on f ac t s as w ell s on l aw , t h e L e rn ed P rin c ip al Co mm is si on e r of I n c om e T x, K ol - 2 h as e r r ed in p s sin g t h e imp u g n ed o rd e r u n d e r s ec t i on 263 d s et t in g sid e t h e as s e ss m en t o rd e r p as s ed b y t h e L ea rn ed s s e ss in g Off ic e r u n d e r s e ct i on 14 3( 3) ig n o rin g t h e s u b mis si on s m ad e b y t h e ap p ell t in r e sp on s e t o t h e n ot ic e u n d e r s e ct i on 2 63 . 3. Th at , o n fa ct s as w ell s on la w, t h e L ea rn ed Prin ci p al Co mm is si on e r o f In c om e Ta x , K o l - 2 h s e rr e d in h old in g t h at t h e p r ov is i on o f R s . 153 c r o r es m ad e d u rin g t h e f inan ci al y ea r 2009- 10 t o wa r d s es t imat e d li ab il it y on wag e r r ea r s p e n d in g fin al iz at i on of wag e r ev is i on i s n ot al l o wab l e s d ed u ct i on in t ot al d i s r eg rd o f t h e m et h o d o f c c ou n t in g r eg u la rl y f ol l ow ed by ap p e llan t , m d at o r y ac c ou n t in g st d rd ap p li ca b l e t o t h e p p e llan t d j u d ic i al p r on ou n c em en t s on t h e id en t i cal i ss u e . 4. Th at , on fa ct s s w ell s on la w, t h e L e rn ed P rin c ip al Co mm is si on e r o f In c om e Ta x , K ol - 2 h as fa il ed t o ap p r e ci at e t h at p r o vi si on f or w ag e r evi si on in ca s e o f t h e ap p el lan t is as c e rt in ed lia b ilit y , wh i ch h ad c c ru e d d u rin g t h e p r e vi ou s y ea r 200 9- 1 0. 5. Th t, on f ac t s as w ell s on l aw , t h e L e rn ed P rin c ip al Co mm is si on e r of In c om e T ax , K ol - 2 h as e r r ed in st at in g in h is or d e r u n d e r s e ct i on 26 3 t h at t h e ap p ellan t cl aim ed d ed u ct i on of R s . 12 2 c r o r es s p r ovi si o n wr it t en b ac k wit h ou t e xam in in g t h e u d it ed fin ci al st at e m e n t s fo r t h e y ea r u n d e r ap p eal . 6. Th t, on f ac t s as w ell s on l aw , t h e L e rn ed P rin c ip al Co mm is si on e r of In c om e T ax , K ol - 2 h as e r r ed in init ia t i n g t h e p r o c e ed i n g u n d e r s ec t i on 26 3 ig n o rin g t h e p rt i cu l r s d in f o rm at i on ava ila b l e on r e c o rd wit h t h e s s e ss in g O ffi c e r at t h e t i m e o f ma k in g as s e ss m en t . 7. Th at y ou r ap p el l t b eg s y ou r l ea v e t o u r g e y ad d it i o n al g r ou n d o r m od i fy n y g r ou n d s t t h e t i me o f h e rin g . 3. Subsequently, assessee has also raised following additional ground of appeal:- "Th at in t h e fa ct s d c i rcu m st c e s o f t h e ap p ellan t d al s o o n law t h e L ea rn ed P rin ci p al C o mmi s si on e r o f In c o m e T ax , K ol - 2 h s e r r ed in f ir st c on clu d in g th t p r o vi si on f o r li ab i lit y o f w ag e r r ea r s mou n t in g t o R s . 1 5 3 c r or e s i s n ot al l ow b le d is r eq u i r ed t o b e ad d e d b ac k n d t h e r ea ft e r d i r e ct in g t h e L e rn ed s se s sin g O ffi c e r t o e xam in e t h e is su e t h e r eb y mak i n g i t imp os si b l e f o r t h e L ea rn ed s s e ssi n g O ffi c e r t o ap p ly h i s min d in d ep en d en t l y d j u d i ci ou sly " . ITA No. 730/Kol/15 Allahabad Bank 2 4. sole issue to be decided in Grounds No. 1 to 7 and additional ground raised thereof, which involve common issue is as to whether Prl.CIT is justified in holding provision of Rs. 153 crores towards estimated liability on wage arrears pending finalization of wage revision made during financial year 2009-10 not allowable as deduction. 5. Prl.CIT on examination of assessment records found that Assessee has made provision of Rs.122,00,00,000/- during F.Y 2008-09 added same to total income of Assesee for A.Y 2009-10 and deducted same as written back for A.Y 2010-11. According to Prl.CIT, provision made and written back thereon is not allowable as deduction, accordingly, exercising jurisdiction u/sec 263 of Act issued notice to assessee. In response to which, Assessee filed copy of extract of 9 t h Bipartite Settlement dt:27- 04-2010 and copies of vouchers issued by Bank showing payment of wages. Considering said documents, Prl. CIT was of opinion that AO did not make any enquires and did not examine allowability of deduction as shown in computation of income. Thereby, Prl.CIT set aside assessment order dt:28-03-2013 for A.Y 2010-11 to extent claim as discussed above and directed AO to examine issue with reference to documents submitted in proceedings initiated u/s.263 of Act. 6. Aggrieved by order of Prl.CIT, in this appeal learned AR submits that pending finalisation of wage revision provision was made during financial year 2009-10 and referred to point 17.4 to substantiate same placed at page ITA No. 730/Kol/15 Allahabad Bank 3 number 139 of annual report book and also referred to page number 40 paper book and submitted memo was issued by Chief manager to all AGMs to create provision towards wage/salary revision in view of bipartite settlement. learned AR also drew our attention to page number 25 of paper book to show breakup of provision made in view of wage areas settlement. learned AR further submits that said issue was covered by order of Tribunal in assessee s own case for AY s 2005 06 and 06 07 which is placed at page number 100 of paper book. 7. learned DR submits that Prl.CIT has given direction only to AO for examination of such documents which were produced in proceedings initiated u/s. 263 of Act. Further he submits that respondent revenue contesting order of Tribunal as relied on by learned AR as it was delivered based on some facts. learned DR further argued that assessee claimed provision involving of these 122 crores in its computation of income and AO did not examine issue relating to 908 crores and same was not referred at .17.4 of annual report. learned DR submits that new agreement was said to have entered in 2005 and there is gap of 5 years from 2005 06 and 2010 11 and order of Prl. CIT is valid wherein there was only direction to AO to conduct enquiry and it is Limited enquiry. 8. Ld.AR submits that in reply to arguments of Ld.DR, Assessee by inadvertent mistake added Rs.122,00,00,000/- to its income in A.Y.2009-10 and to that effect Assessee filed additional ground seeking deduction of such amount before Tribunal. ITA No. 730/Kol/15 Allahabad Bank 4 9. Heard rival submissions and perused material evidence on record. Tribunal for A.Y 2005-06 & 06-07 in Assessee s own case held that wage revision at 13% for year under consideration is liability and provision can be made with reasonable certainty. relevant portion of which reproduced herein below: 13. N ow w e t ak e u p t h e R ev en u e s ap p e al fo r . Y . 2005 - 06 b ei n g I TA N o . 2 07 0/ K OL/ 200 9, G r ou n d s No . 1 & 2 o f w h ich in v ol v e c omm on is su e r elat in g t o t h e d el e t i on b y t h e ld . CI T(A p p eal s) o f t h e ad d it i on of R s. 138 .8 3 c r o r e s .m ad e b y t h e s s es sin g O ff ic e r on c co u n t o f p r ovi si o n f o r sal ary r r ea r s. 14. In t h e r et u rn of in c om e fil ed fo r t h e y e r u n d er c on s id e rat i on , d e d u ct i on o f R s .1 38 .83 c r or e s wa s cl aim e d b y t h e ss e s s e e on c c ou n t o f p r o vi si on f or sal ar y r rea r s. In t h is c on n e ct i on , it wa s su b m it t ed o n b eh al f of t h e as s e s s e e b e f o r e t h e ss e s si n g Of fi c e r t h at t h e la st wag e ag re e m en t en t e r ed in t o wi t h t h e e mp l oy e e s h ad al r ea d y e xp i r ed on 31. 10 .20 02 d t h e r evi si on o f s ala r y d wa g es o f O f fi c e r s d w or k m en wa s d u e f r o m 01 .1 1. 20 02. Th e n eg ot i at i on f o r r ev is i on b et w e en t h e B k d t h e Un i o n of St af f d O ff ic e r s s s oc iat i on wa s in p r og r e s s d u ri n g y ea r under c on s id e rat i on d s p e r ad v ic e o f I n d i Ban k s ss o ciat i on , u n d e r st d in g w as r ea ch ed wi t h t h e W o rk m en Un i on d O ffi c e r s s s oc iat i on s on w ag e r e vi si on . It w as su bmi t t ed t h at e v en t h ou g h t h e fin al ag r e em en t w s n ot ex e cu t e d d ur in g t h e y ea r u n d e r c on si d e rat i on , p r ovi si on of R s .1 38 .83 c ro r e s wa s mad e in t h e ac c ou n t s b s ed e st i mat e o f su c h liab ilit y ma d e b y t h e M ag e m en t d d u l y v e ri fi ed b y t h e st at u t o r y au d it o r s. Th es e su b m is si on s mad e b y t h e s s e s s e e in su p p o rt of it s cla im f o r d ed u ct i on on cc ou n t o f p r o vi si on f o r sa la ry r r e ar s w er e n ot f ou n d ac c e p t ab l e b y t h e s s es sin g O ffi c e r . cc o rd i n g t o h i m, sin c e t h e ex p en d it u r e on cc ou n t o f s ala r y r r ea r s wa s n ot q u t i fi e d, t h e p r o vi si on mad e f o r t h e s am e wa s in t h e n at u r e o f u n s c er t ain ed lia b ilit y d t h e s s e ss e e w s n ot en t i t l ed t o clai m d ed u ct i on f or t h e sa m e. cc o rd in gl y, h e d is all ow e d t h e d ed u ct i on cl aim e d b y t h e as s e s s e e on cc o u n t o f p r o vi si on f o r s ala ry r r e rs . 15. Th e d i s all ow c e mad e b y t h e s s e s sin g O ff ic e r o n ac c ou n t o f it s clai m f o r d e d u c t i on t o wa rd s p r o vi si on f o r sal ar y ar r e ar s wa s ch ll en g ed b y t h e s s e ss e e in t h e p p eal f i led b e f o r e t h e ld . C IT( p p ea ls ) d aft e r c on s id e rin g th e su b mis si on mad e b y t h e s s es s e e s we ll s t h e m at eria l ava ilab l e on r ec o rd , t h e ld . C IT( p p e als ) d el e t ed th e s aid d is all ow c e f o r t h e f ol lo win g r ea s on s g ive n in h is imp u g n ed o rd e r: - ITA No. 730/Kol/15 Allahabad Bank 5 I h av e g on e t h r ou g h t h e su b mi ss io n s o f t h e ap p ella n t n d als o t h e o rd e r o f t h e . O. c c o rd i n g t o t h e c c ou n tin g st d rd 2 9 is su ed b y t h e IC I " p r ovi si on " is l iab i lit y wh ich can b e m ea su r ed on l y b y u sin g su b st t ial d eg r e e o f e st i mat i on . "li b ilit y" is p r e s e n t o b lig t i on of t h e en t e rp ri s e ri sin g f r om p st ev en t s , t h e s et t l em en t of wh i c h is e xp e ct ed t o r e su lt in ou t fl ow f r om t h e en t e rp ri se o f r e s ou rc e s e mb od y in g ec on o mi c b e n e fit s. cc o r d in g to p rag ra p h 1 4 of (A S) 29 , p r o vis i on sh ou l d b e r e c og n i z ed wh en : ) n en t e rp r is e h s p r es en t o b lig t i on s re su lt o f p as t e v en t B) It i s p r ob ab l e t h at ou t f l ow o f r e s ou rc e s e mb od y in g e c on omi c b en e fit s will b e r eq u i r ed t o s et t l e t h e obli g at i on ; d C) r el iab l e e st imat e can be made ou t of ob l ig at i on . If t h e ab o v e c on d it i on s r e mad e , p r o vi si on sh ou l d b e r e c og n iz ed i n t h e fin ci al st at e m en t s. It i s acc ep t ed p rin ci p l e t h at t h e s ala ry / w ag e ac c ru ed d aily , w e ek l y , mo n t h ly as p e r t h e co n t ra ct of p p oin t m en t . T h e li ab ili t y of t h e b k t o p y s ala r y d w ag es at t h e r ev is e d rat e s co mm en c ed f r om t h e d at e o f ex p i r y of t h e ag r e em en t . Th e lia b ili t y t o c omp en s at e t h e e mp l oy e e s f o r t h e s e rv ic e s r en d e r ed is e xi st in g l iab i lit y. T h e r e i s e v e ry p r ob ab ili t y o f ou t fl ow o f r e s ou rc e s on c c ou n t o f s ala r y in c re s e. Th e b si s of e st i ma t e mad e b y t h e b k i s ls o r elia b l e d wa s n ot d i sp ut e d b y t h e . O. R e c en t l y t h e H on b le p e x C ou rt in t h e ca s e o f R ot ork Co n t r ols In d i ( P) Lim it ed v s.- CI T ( 2009) 180 T ax man 422 ( SC) h s h e ld t h at p r ov is i on t o q u li fy f o r r e c ogn it i on n d d ed u ct i on , t h er e m u st b e p r es en t o b lig at io n ri sin g f r om p as t e v en t , s e t t l em en t o f wh i ch i s ex p e ct ed t o r e sult in ou t fl ow o f r es ou r c e s d in r e sp e ct of wh i ch r eli b le e st i mat e o f am ou n t o f ob l ig at i on i s p os s ib l e. T h is d e ci si on w as r en d e r ed b y t h e H o n o ra b l e Su p r em e C ou rt in c on n e ct i on wit h t h e p r ovi si on ma d e b y t h e s s e ss e e f o r ob l ig at io n un d e r wa r ran t y con t ra ct i o n ca r e fu l a ly si s o f t h i s d ec isio n , it can b e s e en t h at t h e C ou rt h s t k en in t o co g n iz c e S 29 of ICA I in d e cid in g wh et h e r p r ov is i on f o r e xp en d it u re is all ow ab l e o r n ot . F o llo win g t h e ab ov e d e ci si on of th e Su p r e me c ou rt, t h e IT T , Nag p u r b en ch in t h e ca s e o f W es t e rn Co al fi eld s li mit ed v CI T, 2 009- T IO L- 589- ITA T- NA G PUR h as all ow ed d e d u ct i on in r e sp e ct o f p r ov isi on fo r in c r em en t al wag e s mad e on e st i mat ed b asi s on acc ou n t o f p e n d i n g Nat i on al C o al Wag e ag r e e m en t - IV f o r .Y . 2 002 - 200 3. In my op in i on p ro vi si on fo r w ag e r r ea r s ma d e b y t h e b k in t h e fin ci al year 20 04- 20 05 sat i s fi e s all c on d it i on s p r e s c rib ed i n S 2 9. H en c e t h e . O i s d i r e ct ed t o all o w t h e p r o vi si on f o r w ag e ar r ea r s d t h i s g r ou n d o f ap p e al is all ow ed . ITA No. 730/Kol/15 Allahabad Bank 6 16. Th e ld . D .R . su b mit t ed t h at t h e r e w as n o b si s g i v en b y t h e s s e s es e on wh i ch t h e m ou n t of sa lar y r r ea r s p ay ab l e t o t h e st ff d O f fi c e r s c ou ld r ea s on b l y b e q u t i fi ed n d in t h e ab s en c e o f t h e s am e as w e ll as n y sp e ci fi c ev en t t h at o ccu r r e d d u rin g t h e ye r u n d e r c on sid e rat i on sh o wing t h at t h e liab il it y on c c ou n t o f sal ry r r ea r s h ad c ry st alliz e d, t h e p r o vi si on ma d e b y t h e s s es e s e fo r sal ry ar r e rs rep r e s en t ed u n as c e rt in ed lia b ili t y wh i ch w as n ot l lo wab le as d ed u ct i o n , as rig h t ly h eld b y t h e s s es sin g O f fi c e r . H e c on t end ed t h at t h e ld . C IT (A p p e al s) , h ow e v e r, ov e rl o ok ed t h e s e r el ev t asp e ct s h ig h li g h t ed b y t h e s s e s sin g O ffi c e r d all o w ed t h e cla im of t h e as s e s s e e b y r el yin g on t h e d e ci si on s of t h e H on b l e Su p r em e C ou rt i n t h e ca s e o f Bh ra t Ea rt h M o v e r s ( su p r a) d R ot o rk C on t r ol s In d i ( P) Lim it ed ( su p ra) , wh ich ar e d i st in g u ish ab l e on fa ct s . H e c on t en d ed t h t in b o t h t h e s e ca s e s d e cid ed b y t h e H on b l e Su p r em e Co u r t, t h e p r ov is ion wa s m ad e fo r t h e p r e s en t li ab il it y , wh e r ea s in t h e ca s e of t h e as s e ss e e , t h e l iab i l it y on c c ou n t o f s ala ry r r ea rs w as n ot p e rt ain in g t o t h e y ea r u n d e r c on sid e rat i on al on e , bu t t h e sa m e p e rt ain ed t o .Y . 20 03- 0 4 d 2004- 05 al s o. H e h as su b mit t ed t h at t h e d e ci si on o f Hy d e rab ad B en ch o f I TA T in t h e ca s e o f n d h ra P ra d e sh G r amin V ik as Ban k ( I TA N o s . 5 1 & 88/ HY D / 20 15 d at e d 10 .04 .20 15) , on t h e ot h e r h d , is d ir e ct l y ap p li cab l e t o t h e fa ct s o f t h e p r e s en t c ase d st r on g l y r el i ed on t h e s am e in su p p o rt of t h e R ev enu e s c as e on t h i s is su e . 17. Th e ld . c ou n s el f o r t h e s s e ss e e , on t h e ot h e r h d , su b mit t ed t h t t h e s ala r y d wag e r ev is i on wa s d u e f r om 01. 11 .20 02 d it , t h e r ef o r e , can n o t b e d is p u t ed t hat t h e liab il it y on cc ou n t of su c h wag e re vi si on h ad lr ea d y ac c ru ed . H e su b mi t t e d t h at t h e Bi - p rt it e t alk s b et w e en In d ian Ban k s s s o ci at i on s d E mp l oy e e s Un i on w e r e alm o st at t h e fin l st ag e as on 31 .0 3.2 005 d on t h e b si s o f n eg ot i at i on s t h at h ad t k en p l c e d u n d e r st din g t h at h ad r ea ch ed , t h e l i ab ilit y wa s e st im at ed b y t h e sse s s e e at 13 % o n cc ou n t o f wag e r r ea r s . H e c on t en d e d t h at th e f act t h at s p e r t h e g r e em en t fin all y en t e r e d in t o in M ay , 20 05 , wag e r e vi si on o f 13 .25 % w as ag r e ed i s su f fic i en t t o sh ow t h at t h e p r ovi si on ma d e b y t h e s s e ss e e at 1 3 % r ep r e s en t e d liab il it y , wh i ch c ou l d b e r e as on ab l y es t imat e d . H e su b mit t ed t h at simi la r i s su e i n v ol v ed in t h e ca s e o f BP C om p y Lim it ed v s .- C IT h as b e en d e cid ed b y t h e C o o rd in at e B e n ch o f t h i s T r ib u n l in f av ou r of t h e s s es e s e in sim ila r fa ct s n d ci r cu m st n c e s vi d e i t s o r d e r r ep o rt e d in 78 TTJ ( CA L) 15 8. 18. W e h av e c on sid e r e d t h e ri val su b mi s si on s d al s o p e ru s ed t h e r e l ev t m at e rial av ail ab l e on r e co r d . I t is ob s e rv e d t h at t h e Sala ry d Wa g e R ev is io n g r e e men t en t e r ed in t o b y t h e as s e ss e e - Ban k wi t h it s St ff and O ffi c e rs ea rl i e r h ad al r ead y e xp i r ed on 3 1. 10 .20 02 d , t h e re f or e , t h e n e w r e vi si on wa s d u e rig h t f r om 0 1. 11 .20 02 . Th e l iab i lit y on ac c ou n t o f sal ar y r r ea r s t h u s h d al r ea d y ac c ru ed d t h e is su e t h t i s r e q u i r ed t o b e c on sid e r ed i s wh et h e r it wa s ITA No. 730/Kol/15 Allahabad Bank 7 p o s sib l e t o sc e rt in o r q u t i f y t h e sa m e wi t h r ea s on b le c e rt ain t y in t h e y e r u n d e r c on si d er at i o n . In t h i s r e g rd , it is ob s e rv e d t h at n e g o t iat i on s b et w e en In d ia n B k s s s oc iat i on d E m p lo y e e s Un ion h d alr e ad y t ak en p la c e d t h e fin al u n d e r st n d in g w as al mo st r e ach ed d u rin g th e y ea r u n d e r c on sid e r at i on , wh ich is e vi d en t f ro m t h e fa ct t h at t h e fin al ag r e em en t f o r r ev is i on wa s en t e r e d in t o in t h e m on t h of Ma y, 20 05 it s el f, i . e . imm e d iat e ly ft e r t h e e n d o f t h e y ea r u n d e r c on s id e rat io n . Th e f ct t h at t h e r evi si on w s fin ally s et t l e d wit h 13 .2 5 % in Ma y , 20 05 ls o g o e s t o sh ow t h at t h e p r o vi si on m ad e b y t h e as s e s s e e f o r su ch r evi si on at 1 3 % in t h e y e r u n d er c on sid e ra t i on wa s li ab ilit y , wh i ch c ou l d b e as c e rt in ed wit h r ea s on ab l e c e rt in t y . 19. In su p p o rt o f t h e R e v en u e s ca s e on t h is i s su e , t h e l d . D .R . h as r e li ed on t h e d ec is io n of t h e H yd e rab ad B en ch o f t h is T rib u n al in t h e ca s e of n d h r P ra d esh G ra min V ik as Ban k . It is , h o w ev e r , ob s e r v ed t h at t h e sa m e is d i st in g u i sh ab l e on fa ct s, in s mu c h s , t h e li ab il it y on ac c ou n t of s ala r y ar r e ar s in t h e sa id c s e h d ar is en as r e su l t of p r o c e ed in g s h e l d on 24. 07 .20 10, i. e . m u ch la t e r t h t h e cl o su r e o f t h e r el e v t y ea r u n d e r c on si d e rat i on d t h i s b ei n g t h e u n d i sp u t ed p o sit ion , t h e T ri b u n al h eld t h at t h e sai d li ab il it y h av in g n eit h e r ri s en n o r d is ch rg e d d u r in g t h e r e l eva n t yea r w as n ot al l owa b l e s d e d u ct i on . 20. In t h e ca s e o f I BP Co mp y Li mit ed ( su p r a) , t h e fa ct sit u at i on i n v ol v ed , on t h e ot h e r h d , wa s sim ila r t o t h e c as e o f t h e ss e s s e e in s mu ch as , t h e P ay Sc al e d ot h er b en e fi t s o f t h e O f fi ce r s w e r e d u e fo r r e vi si on w. e .f . 1 s t u g u s t, 1 997 d t h e ex e r ci s e t o r evi s e t h e sa m e w as lr e ad y in p r og r e ss . Th e b si s of su c h r ev is i on wa s u l t im at ely c c ep t ed b y t h e G ov e rn m en t d it wa s on t h is b si s t h at t h e as s e s se e- c omp y h ad w o rk e d ou t t h e lia b ili t y i n r e sp e ct o f t h e sa me . In t h e s e fa ct s d ci r cu ms t c es , it w as h eld b y t he Co o r d in at e B en ch o f t h is T rib u n al t h at t h e p r o vi si on fo r in c r ea s e in s ala ri e s d w ag e s m ad e b y t h e s s e ss e e on t h e b as is o f Bu r eau o f Pu b li c En t er p ri s e G u id elin e s in ss e s s men t y ea r 19 89- 9 0 w as n ot fo r c on t in g e n t liab i lit y d t h e r ea s on b l e p r o vi si o n f o r su ch l iab i lit y w s r eq u i r ed t o b e t ak en in t o c c ou n t fo r rr ivin g at t h e c omm e r ci al p r of it . In ar ri vin g at t h i s c on clu si on , t h e Tr ib u n l r eli e d on t h e d e ci s ion o f t h e H on b l e Su p r em e C ou rt i n t h e ca s e o f B h rat E art h Mo v e r s Li mit ed vs . - CIT r ep o rt ed in 2 45 IT R 428 , wh e r ei n it wa s h eld b y t h e H o n b l e p ex C ou rt t h at if b u sin es s lia b ilit y h as d e fin it e ly ri s e n in t h e c c ou n t in g ye r, t h e d e d u c t ion sh ou ld b e all ow e d, alt h ou g h t h e liab ilit y m ay h av e t o b e q u t i fi ed d d i sc h arg e d t fu t u r e d at e. It w as h eld t h at wh at sh ou ld b e c e r t ain is t h e in c u r r in g of t h e liab ilit y w h ich sh ou ld b e ca p ab l e o f b e in g e st i m at ed wit h r e as on ab l e c e rt ain t y t h ou g h t h e ct u l q u t i f ica t i on ma y n ot b e p o s sib l e . It wa s h el d t h at i f t h e s e r eq u ir e me n t s re s at i sf i ed , t h e l iab ilit y i s n ot c on t in g en t on e b u t it i s liab ilit y in ITA No. 730/Kol/15 Allahabad Bank 8 p r e s en t i . In ou r op in i on , t h e r t io o f t h es e j u d ici al p r on ou n c em en t s i s cle rl y ap p li c ab l e t o t h e fa ct s of t h e p r e s en t ca s e d r e sp e ct fu ll y f oll o win g t h e sa m e, w e u p h old t h e imp u g n e d o rd e r o f t h e l d . CI T(A p p e als ) all o win g t h e c l aim o f t h e s s es s e e f o r d ed u ct i on on c c ou n t of p r ov isi on f o r sal ry r r ea r s . G r ou n d s N o . 1 & 2 o f t h e R e ve n u e s ap p eal ar e ac c o rd in g ly d i sm is s ed . 10. co-ordinate Bench above, while giving relief to Assessee considered final agreement for revision of wages said to have entered between Indian Banks Association and Employees Union and held provision is maintainable with reasonable certainty. Coordinate Bench also, by relying on decision of Hon ble Supreme Court in case of Bharat Earth Movers Limited vs.- CIT reported in 245 ITR 428, wherein it was held by Hon ble Apex Court that if business liability has definitely arisen in accounting year, deduction should be allowed, although liability may have to be quantified and discharged at future date and held that what should be certain is incurring of liability which should be capable of being estimated with reasonable certainty though actual quantification may not be possible, thereby Co-ordinate Bench held that Assessee is entitled to claim deduction against provision made for such wage revision. 11. In light of above decision which drew support from decision of Hon ble Supreme Court in case of Bharat Earth Movers Limited vs.- CIT, we are of view, that Assessee is entitled to claim deduction of provision of Rs.122,00,00,000/- in year under consideration, but, however, taking into consideration, documents as filed by Assessee in proceedings u/s. 263 wherein said documents came up for scrutiny for first time and it is also ITA No. 730/Kol/15 Allahabad Bank 9 noticed, as rightly pointed out by Prl.CIT that nothing was examined by AO on such provision from assessment order, in view of same, we remand case to file of AO for fresh consideration keeping in view of documents i.e copy of extract of 9 t h Bipartite Settlement dt:27-04-2010 and copies of vouchers issued by Bank showing payment of wages and to pass such order as indicated above, therefore, order of Prl.CIT is justified and grounds raised by Assessee are allowed for statistical purposes. 12. In result, appeal filed by assessee is allowed for statistical purposes. Order Pronounced in Open Court on 19 t h October,2016. Sd/- Sd/- WASEEM AHMEED S.S.VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 19 /10/2016 Copy of order forwarded to:- 1. Appellant/Assessee : Allahabad Bank 2 N.S Road, Kolkata-1. 2. Respondent/Department: Principal Commissioner of Income Tax, Aaykar Bhawan, 3rd Floor, P-7 Chowringhee Square, Kolkata-69. 3. CIT 4. CIT(A) 5. Departmental Representative 6. Guard File True Copy By order Assistant Registrar ** PRADIP SPS Income Tax Appellate Tribunal Kolkata benches, Kolkata ITA No. 730/Kol/15 Allahabad Bank 10 Allahabad Bank v. Principal Commissioner of Income-tax, Kolkata-2