IN THE HIGH COURT OF DELHI AT NEW DELHI 
 . 
         ITA 739/2010  
 . 
 PEPSICO INDIA HOLDINGS PVT LTD                      ..... Appellant 
 Through Mr. C.S. Aggarwal, Sr. Adv. with 
 Mr. Prakash Kumar, Adv. 
 . 
 . 
 . 
 versus 
 . 
 COMMISSIONER OF INCOME TAX                         ..... Respondent 
 Through Mrs. Prem Lata Bansal, Adv. 
 . 
 CORAM: 
 HON'BLE THE CHIEF JUSTICE 
 HON'BLE MR. JUSTICE MANMOHAN 
 . 
 O R D E R 
                               02.07.2010 
 . 
 . 
 CM No.11165/2010 (Exemption) 
 Allowed, subject to all just exceptions. 
 ITA No.739/2010 
 The present appeal preferred under Section 260A of the Income Tax Act is 
 admitted on the following substantial questions of law:- 
 1. Whether the Income-Tax Appellate Tribunal was justified in law in holding 
 that an amount of Rs.68,23,350/- representing the liability towards gratuity and 
 payable to employees and duly debited in the Profit and Loss Account represented 
 an unascertained liability so as to enhance the book profit in terms of 
 provisions of Clause (c) of Explanation to Section 115JA(1) of the Income Tax 
 Act, 1961? 
 . 
 . 
 ITA No.739/2010                                                        page 1 of 
 2 
 2. Whether the Income-Tax Appellate Tribunal was justified in law in not 
 directing, that the amount of Rs.29,60,828/- being the liability towards leave 
 encashment due to the employees could not be deducted from the income computed 
 under the provisions of the Income Tax Act, 1961, inspite of judgment of Apex 
 Court in the case of Bharat Earthmovers v. CIT, reported in 245-ITR-428-SC? 
 . 
 3. Whether in the circumstances of the case was not the Income Tax Appellate 
 Tribunal right in not deducting an addition made of Rs.2,83,70,822/- despite the 
 fact that no such deduction was either claimed in the computation of income or 
 was debited in the Profit and Loss Account? 
 . 
 Mrs. Prem Lata Bansal, learned counsel for the revenue accepts notice. 
 In view of the aforesaid, no further notice need to be issued. 
 . 
 . 
 . 
 CHIEF JUSTICE 
 . 
 . 
 . 
 MANMOHAN, J 
 JULY 02, 2010 
 vk 
 . 
 . 
 . 
 . 
 . 
 . 
 . 
 . 
 . 
 . 
 . 
 ITA No.739/2010                                                        page 2 of 
 2 
 . 
 . 
 . 
 .