TMI Blog2011 (6) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... 297 OF 2009 - - - Dated:- 22-6-2011 - J.P. DEVADHAR, SMT. R.P.SONDURBALDOTA JJ. Daulatnagar (Marali), Tal. Patan, Dist. Satara. ..Respondent. Mr. Vimal Gupta for the appellant. Mr. S.N. Inamdar, senior advocate for the respondent. ORAL JUDGMENT (PER J.P.DEVADHAR, J.) 1. Heard. Admit on the following question of law :- " Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in holding that under Section 145A of the Income Tax Act, 1961 the excise duty element cannot be added to the value of unsold sugar lying in stock on the last day of the accounting year ? " 2. By consent, appeal is taken up for final hearing. 3. The assessment year involved is AY 2001-02. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .f. 1/4/1999 reads thus:- " 145A. Method of accounting in certain cases- Notwithstanding anything to the contrary contained in Section 145, the valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head "Profits and gains of business or profession" shall be-- (a) in accordance with the method of accounting regularly employed by the assessee, and (b) further adjusted to include the amount of tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of valuation. Explanation - For the purposes of this section, any tax, duty, cess or fee (by whatever name cal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability, the relevant date for the duty liability is the date on which the goods are cleared. In other words, in respect of excisable goods manufactured and lying in stock, the excise duty liability would get crystallised on the date of clearance of goods and not on the date of manufacture. Therefore, till the date of clearance of the excisable goods the excise duty payable on the said goods does not get crystalised and consequently the assessee cannot be said to have incurred the excise duty liability. In respect of the excisable goods lying in stock, no liability is determined as payable and consequently, there would be no question of incurring excise duty liability. 12. In the present case, it is not in dispute that the manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X
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