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Commissioner of Income Tax Puducherry Versus M/s. DXN Herbal Manufacturing Industries Pvt. Ltd.

Duty paid by the assessee in advance under protest - whether Tribunal was right in holding that the duty paid by the assessee in advance under protest by treating the payment as loan and advance in the balance sheet without debiting the payment in the profit and loss account is allowable as a deduction under Sections 37 and 43B ? - Held that:- As rightly pointed out by the Tribunal the assessee has actually paid the said amount as excise duty in the relevant previous year for enabling them to mo .....

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What the Assessing Officer has recorded is that no order or demand of excise duty served upon the assessee was produced. But, the Assessing Officer has recorded the fact that even in the order of the High Court, it was mentioned that the goods moved out of the factory after payment. The point that was raised by the Assessing Officer was that there was no demand on the part of the Department. The crystallization of demand may not really be a ground to suspect the actual payment. In any c .....

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he assessee in advance under protest by treating the payment as loan and advance in the balance sheet without debiting the payment in the profit and loss account is allowable as a deduction under Sections 37 and 43B ? 2. Heard Mr.J.Narayanasamy, learned Standing Counsel for the Revenue. 3. The assessee is engaged in the sale of ayurvedic products. For the assessment year 2009-10, the assessee filed original return of income on 28.9.2009 admitting a particular total income after claiming deductio .....

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f ₹ 3,30,39,169/- as excise duty paid. The claim was made under 43B on payment basis. But unfortunately, the said payment had been made pursuant to a conditional order passed by the High Court in a litigation between the assessee and the Department of Central Excise. In other words, the liability of the assessee to pay excise duty had not crystallized or at least attained finality. Therefore, the assessee did not show this amount in the profit and loss account, but showed it under the head .....

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e, the Commissioner (Appeals) held that the payment made was an allowable expenditure incurred under Section 37 as well as under Section 43B. 6. The Revenue filed a further appeal to the Tribunal raising a specific ground in ground No.2 to the effect that if the assessee had not claimed the expenditure in its books of accounts, but had shown the same only as advance receivable in the balance sheet, the deduction could not have been allowed. The grievance of the Revenue is that without considerin .....

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