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2014 (9) TMI 826 - HC - Income TaxOutstanding Excise duty u/s 43B - Bank guarantee paid by assessee - Whether the tribunal has rightly upheld the decision of the CIT(A) in deleting addition made u/s 43B on account of Central Excise liability appearing in the balance sheet – Held that:- The excise duty was levied on fabrics and the processing charges - furnishing of a bank guarantee for whole or part of the disputed excise duty pursuant to the order of the Court is not equivalent to payment of excise duty, that is, only securing the revenue and in terms of the conditions imposed by the order of the Court - The bank guarantee cannot be straightway encashed by the revenue and until pendency of the proceedings - This was therefore not equivalent to the payment - section 43B is entitled as "certain deductions but only on actual payment" - the view taken by the tribunal is in accordance with the legal position as set out in the judgment of the Supreme Court as also in consonance with the wording of section 43B – Decided in favour of revenue.
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