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2014 (2) TMI 458 - AT - Income TaxDeletion of addition made on account of excise duty Held that:- The Excise Duty was paid under protest - He was not required to pay the Excise Duty but when the excise authorities have demanded, the assessee had paid the same - the assessee has gone before the Commissioner, Central Excise (Appeals) and won the case but the Department has preferred an appeal before the CEGAT - since the assessee has paid the Excise Duty under protest, it is expenditure incidental to his business and should be allowed u/s 37 of the Act Relying upon Kedarnath Jute Manufacture Co. vs. CIT [1971 (8) TMI 10 - SUPREME Court] - the liabilities of the Excise Duty accrues on the taxable event taking places viz. manufacture of excisable goods - The liability is on the manufacturer and not ultimately on sellers - It was an enforceable legal liability allowable irrespectively of whether subsequently, exemption granted or the same has been contested in the appeal there is no specific infirmity has been pointed out in the order of CIT(A) except placing heavy reliance upon the assessment order, the order of CIT(A) confirmed Decided against Revenue. Deletion of disallowance of payment Interest on advances and loans Held that:- The assessee has furnished the details of interest free funds available with it - the assessee was having general reserve besides share capital which was utilized for interest free advances - The Revenue has not placed any evidence on record to establish that the borrowed funds were utilized for interest free advances thus, no corresponding disallowance can be made there was no infirmity in the order of CIT(A) Decided against Revenue.
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