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2020 (2) TMI 1283 - HC - Income TaxAdjustment under Section 145-A - Variation in excise duty paid by procuring raw materials and discharge of excise duty liability on non-finished goods - HELD THAT:- Respondent followed the above accounting method while accounting for its excise duty paid on raw materials and final products. Respondent had explained which was accepted by the first appellate authority that ICAI mandates usage of exclusive method as per which the amount of excise duty actually paid on inputs cannot be debited to the profit and loss account. But this was an expenditure which had actually been incurred and thus, adjustment under Section 145-A should be allowed to the respondent and deducted from the profits subject to tax in India. Following its earlier decision in the case of the respondent itself for the assessment year 2009-10 [2017 (2) TMI 39 - ITAT MUMBAI] the first appellate authority took the view that deduction on account of adjustment under Section 145-A should be allowed. Irrespective of the fact that Revenue’s appeal for the assessment year 2009-10 was dismissed on withdrawal on the ground that the tax effect was below the prescribed limit, we have independently applied our mind to the said order which has been followed by the Tribunal for the present assessment year and we find that the view taken by the first appellate authority as affirmed by the Tribunal is correct and no interference is called for. The first appellate authority had rightly deleted the addition, which has been affirmed by the Tribunal. On thorough consideration, we do not find any merit in this appeal as no substantial question of law arises out of the order of the Tribunal.
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