SANJIV KHANNA, J.

1. Admit. Rule DB.

2. We have heard counsels for the parties and proceed to pronounce our decision.

3. The petitioner herein is a company and for the assessment year 2003-04, a regular assessment order dated 20.10.2005 after scrutiny under Section 143(3) of the Income Tax Act, 1961 (‘Act’, for short), was passed.

4. Subsequently, respondent No.1-the Deputy Commissioner of Income Tax, Circle 7

(1) issued notice under Section 148 of the Act dated 8.3.2010. In response to the said notice, the petitioner filed computation of income under protest vide letter dated 15.4.2010 and requested respondent No.1 to furnish reasons recorded prior to the issue of notice under Section 148.

5. The respondent No.1, vide letter dated 6.10.2010, furnished the reasons to believe to the petitioner. The reasons recorded are as under:

“The provision for gratuity amounting to Rs.16,59,906/-claimed in the profit and loss account and offered it for tax while computing the income under normal provision of the act. But while computing the income under special provision u/s 115 JB of the IT Act, it was not added back. This provision was required to be added back being an unascertained