ITA No.76 of 2019 GA No.2116 of 2017 IN HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE PRINCIPAL COMMISSIONER OF INCOME TAX-2,KOLKATA Versus NATIONAL INSURANCE CO. LTD. BEFORE: Hon'ble JUSTICE I. P. MUKERJI Hon'ble JUSTICE MD. NIZAMUDDIN Date : 16th July, 2019. Appearance: Mr. P. K. Bhowmick, Adv. Mr. Debangsu Ghorai, Adv. Mr. N. K. Poddar, Sr. Adv. Mr. Debasish Mitra, Adv. Mr. Siddhartha Das, Adv. Court : This is appeal under Section 260A of Income Tax Act, 1961. revenue has come up with this appeal against order dated 5th August, 2016 passed by Income Tax Appellate Tribunal, Bench, Kolkata in ITA No. 674/Kol/2012 relating to Assessment Year 2005-2006 and raised following two questions: (a) Whether on facts and in circumstances of case learned tribunal, has erred in law in deleting addition of Rs.37,69,96,000/- by holding that provision for unidentified Motor Third Party Claim is ascertained liability and should be deducted while computing book profit under Section 115JB of Income Tax Act, 1961 by disregarding that aforesaid provision made for liability which has not been crystallized and such provision is neither backed by 2 Insurance Regulatory Development Authority (IRDA) nor by any accounting standards? (b) Whether on facts and in circumstances of case learned tribunal has erred in law in upholding order of CIT (A) by holding that provision for Liabilities Incurred But not Reported (IBNR) amounting to Rs.12,77,00,000/- as ascertained liability and should be deducted while computing book profit under Section 115JB of Income Tax Act, 1961 while same is inadmissible in terms of explanation given below Section 115JB of said Act? So far as first question is concerned, it is covered by decision of this Court dated 15th September, 2014 in ITAT No.77 of 2014 with GA No.1926 of 2014 (Commissioner of Income Tax, Kolkata-II, Kolkata vs. National Insurance Co. Ltd.) in favour of assessee. So far as second question is concerned, department has accepted claim of assessee on aforesaid issue in assessment years 2000-2001 to 2004- 2005 and 2006-2007 and it could not show exceptional reason for departure of their stand in present assessment year. In view of above reason, we do not find merit in this appeal. Accordingly, appeal (ITA 76 of 2019) and stay application (GA No. 2116 of 2017) are dismissed. (I. P. MUKERJI, J.) (MD. NIZAMUDDIN, J.) Principal Commissioner of Income-tax-2, Kolkata v. National Insurance Co. Ltd