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2014 (1) TMI 812 - HC - Income TaxWhether excise duty is excluded form value closing stock - Held that:- Following Assistant Commissioner of Income Tax Vs. Narmada Chematur Petrochemicals Ltd. [2010 (8) TMI 263 - Gujarat High Court] - the issue / dispute in the present case is with respect to the period prior to amendment in the Act i.e. 1/4/1999 - The duty of Central excise if added to enhance the value of closing stock would result in enhanced opening stock on the first day of the next accounting period - So the next year’s profits would get depressed accordingly - Over a period of time the whole excise would even out, in other words, be revenue neutral. At the same time while disturbing the value of the closing stock the assessing authority could not change the method of accounting regularly employed - Decided against Revenue. Whether interest from Bank Guarantee Deposits, letter of Credit be eligible for deduction u/s 80IA - Held that:- Following Liberty India Vs. Commissioner of Income Tax [2009 (8) TMI 63 - SUPREME COURT] - They should be treated as separate items of revenue or income and accounted for accordingly - These cannot be credited against the cost of manufacture of goods debited in the Profit & Loss account for purposes of Sections 80-IA/80-IB as such remissions would constitute independent source of income beyond the first degree nexus between profits and the industrial undertaking - Decided against Revenue. Interest on delayed payments - Held that:- Following Nirma Industries Ltd. Vs. Deputy Commissioner of Income Tax [2006 (2) TMI 92 - GUJARAT High Court] - While computing special deduction under section 80I, interest received from trade debtor towards late payment of sale consideration is to be included in the profits of the industrial undertaking - Decided in favour of revenue.
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