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2024 (2) TMI 282 - BOMBAY HIGH COURTDeduction u/s 43B - Payment of Excise duty - double deduction - excise duty in case of unsold stocks at the end of previous year is not treated as expenses - HELD THAT:- Assessee was correct in submitting that the excise duty in case of unsold stocks held by them at the end of previous year is not treated as expenses in the accounts, but has been separately claimed and allowed in the income tax assessments. While computing the total income for Assessment Year 1986- 1987, appellant had claimed the deduction in respect of excise duty being the differential excise duty attributable to opening and closing stock of the finished goods held by them during the previous year ended 29th December 1985. Excise duty paid and included in the closing stock has to be claimed separately as a deduction otherwise appellant would not be claiming the entire excise duty paid in the year of its payment. Section 43B of the Act, which came to be introduced from Assessment Year 1984- 1985 onwards, provides that the excise duty would be deductible only on the payment basis in the year in which it is actually paid. Therefore, while computing the total income for Assessment Year 1986-1987, assessee had claimed a deduction of excise duty actually paid in the year 1985 and included in closing stock less excise duty paid and included in closing stock of 1984 already claimed. Therefore, in our view, the Tribunal was not correct in coming to a conclusion that this amount would amount to double deduction.
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