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2006 (9) TMI 142 - HC - Income TaxApplicability of of section 43B - Receipt of Excise duty - the amount of excise duty collected by the assessee but not paid under the provisions of section 43B ? - HELD THAT:- In our opinion, the Tribunal was unjustified in observing that the provisions of section 43B of the Act would not be attracted, the Tribunal was also unjustified in observing that the excise duty recovered from the purchaser was kept with the assessee as deposit. If the assessee was of the opinion that under the circumstances, it was not required to recover any excise duty from any purchaser, then, it should not have recovered and should have felt content with a bank guarantee in its favour, but, once it proposes to recover the tax or the excise duty, then, the said recovery would amount to trade receipt in its hand and it would not be entitled to exemption u/s 43B of the Act if it does not actually pay the amount. The Tribunal was unjustified in law and on facts in holding that the trader was entitled to the benefits u/s 43B and not to be charged on the amount recovered under the head of excise duty. The reference is answered in favour of the Revenue. The order passed by the Tribunal is set aside. The reference stands allowed.
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