TMI Blog2013 (7) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment, books of accounts on cash or mercantile basis. Section 145-A begins with a non-obstante clause, and prescribes that the value of goods shall be further adjusted to include the amount of any tax, duty, cess or fee by whatever name called actually paid - section 145 was introduced in 1999 and overrides other provisions – The decision of the Supreme Court in Orient Paper Mills Ltd. Vs. Union of India (1967 (3) TMI 47 - SUPREME COURT OF INDIA) holds authority on the issue that removal of goods from the factory premises, or other specified place implies that it is leviable, and not postponed – appeal decided in favour of revenue. - ITA 1288/2011 - - - Dated:- 3-12-2012 - S. Ravindra Bhat And R. V. Easwar,JJ. For the Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer as per the provisions of Section 43B read with Section 145A of the Act. However, the CIT(A), on appeal by the Assessee, allowed the appeal on both of the above stated issues. This was pursuant to the findings of the CIT(A) in the case of Assessee for A.Y. 2001-02 and 2004-05 and also the order of the ITAT for the A.Y. 1990-91. He accordingly deleted both the additions. Aggrieved by the decision of the CIT(A), Revenue filed an appeal before the ITAT which confirmed the stand of the CIT(A) on both counts. The Revenue is in appeal before this Court. The appeal raises the following question of law: "Whether the Ld. ITAT erred in deleting the addition of Rs. 69,91,983/- made by the Assessing Officer under section 43B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sults of that period. Therefore, the true purpose of crediting the value of the unsold stock is to balance the cost of the goods entered on the other side of the account at the time of purchase, so that on cancelling out of the entries relating to the same stock from both sides of the account would leave only the transactions in which actual sales in the course of the year has taken place and thereby showing the profit or loss realized on the year's trading. 7. The Appellant also submitted that the provisions of Section 43B and 145A should be read together as the amount has been shown payable in Form No. 3CD report filed with the return of the assessee. It is essential to note that the provisions of section 145A of the Act mandate that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the law. Section 145A was introduced to bring uniformity in valuation of stock; it requires that stock valuation should be inclusive of any tax, duty, cess or fee actually paid by the assessee to bring the goods to the place of its location and condition as on date of valuation, even if such tax or duty is refundable. Thus, the Revenue has misconstrued Section 145A and presumed that it requires that excise duty payable on finished goods should be added to the inventory valuation even if not paid as goods are lying in the factory. 10. The assessee also contends that the excise duty payable on the value of closing stock should not be included. Also, there is no requirement that the excise duty which might be payable at the time of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... name called), actually paid or incurred by the assessee to bring to goods to the place of its location and condition as on the date of valuation." Therefore, the assessee submits that the Assessing Officer was not justified in adding the excise duty to the cost of the raw materials, etc in computing the value of goods. Hence, the order of ITAT does not call for interference. 12. The assessee has, further, relied on the order of ITAT, Allahabad Bench in Shyam Biri Works Ltd. v. CIT (2007) 108 ITD 489 (All) as well as the case of ACIT v. Narmada Petrochemicals Ltd, reported in (2010) 327 ITR 369 (Guj). In both these cases it was held that the excise duty will be payable only when the goods are removed from the warehouse or factory premis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1999, and overrides other provisions. Its object is to include, for the purpose of valuation of goods, the actual amount of tax, duty, cess or fee, paid by the assessee. Unlike in the case of Section 43-B, which mandates the inclusion, in the computation of income, amounts paid, towards certain liabilities, including tax, but not actually arising or accruing at the time of payment, this provision (Section 145-A) directs inclusion of the amounts of tax, duty etc, actually paid for the purpose of valuation alone. 14. The decision of the Supreme Court in Orient Paper Mills Ltd. Vs. Union of India AIR 1967 SC 1564 is now an authority on the issue that removal of goods from the factory premises, or other specified place implies that it is lev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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