Held that  the provision for gratuity relating to earlier years is provided in the books of accounts as item of prior period expenses, then same needs to be provided in the P&L are below the line and hence, book profit under s 115JB is to be computed by taking net profit as per P&L are before considering deduction claimed for prior period item being provision for gratuity relating to earlier years. Order of the Assessing Officer is affirmed. (AY. 2006-07)