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2016 (6) TMI 93 - ITAT AHMEDABAD

2016 (6) TMI 93 - ITAT AHMEDABAD - TMI - Disallowance made u/s.43B - amount of excise duty paid - Held that:- CIT(A) while deciding the issue in favour of assessee has given a finding that the amount of excise duty paid by the assessee was eligible for deduction in view of the decisions cited in his order. We also find that A.O. in his order has noted that the facts in the impugned year A.Y. 2009-10 are similar to that of A.Y. 2008-09. We further find that the Co-ordinate Bench in assessee’s own .....

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f the year in which the liability is incurred. - Decided against revenue - ITA No. 1931/Ahd/2012 - Dated:- 3-5-2016 - Shri Anil Chaturvedi, A. M. And Shri Kul Bharat, J. M. For the Appellant : Shri Keyur Patel, Sr. D.R. For the Respondent : Shri Sunil Talati, A.R. ORDER Per Anil Chaturvedi, Accountant Member This appeal filed by Revenue is against the order of CIT(A)-VI, Baroda, dated 27.02.2012 for the assessment year 2009-10. 2. The relevant facts as culled out from the materials on record are .....

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e matter before the ld. CIT(A) who vide order dated 27.06.2012 (in Appeal No. CAB/(A)VI-467/11-12) granted partial relief to the assessee. Aggrieved by the order of ld. CIT(A), Revenue is now in appeal before us and has raised the following ground : 1. On the facts and in the circumstances of the case and in law. (i) the Ld. CIT(A) erred in law in deleting the disallowance of ₹ 4,04,19,672/- u/s 43B of the Act disregarding the fact the assessee was following the mercantile system of accoun .....

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.O. was therefore of the view that Excise Duty liability did not accrue during the year and since, assessee was following mercantile system of accounting, deduction u/s.43B of the Act was allowable in the year of payment if the liability accrued during the previous year. He also noted that on similar facts in asseessee s own case for A.Y. 2008-09 the deduction u/s.43B of the Act was disallowed by his predecessor. He therefore disallowed Res.4,04,19,762/- u/s.43B of the Act. 5. Aggrieved by the o .....

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demand for the same was raised by the concerned officer notwithstanding the fact that the liability was disputed by the appellant. It is also clear from the decision in the case of CIT v/s Bharat Carbon & Ribbon Mfg.Co.Pvt.Ltd. 239 ITR 505 that treatment given in the books of account of the appellant is not relevant for allowability of deduction under IT Act. In fact, facts of the case of the appellant are identical to those in the case of CIT v/s Bharat Carbon & Ribbon Mfg.Co.Pvt.Ltd. .....

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that on identical facts in assessee s own case for A.Y. 2008-09, Revenue had preferred appeal before the Tribunal. The Tribunal vide its order dated 07.12.2015 in ITA No.2463/Ahd/2012 dismissed the appeal of Revenue. He pointed to the relevant finding of Tribunal. He therefore submitted that since the A.O. has also admitted that the facts of the case in the year under appeal are identical that of A.Ys. 2008-09 and since for A.Y. 2008-09, the matter has already been decided in favour of assessee, .....

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find that A.O. in his order has noted that the facts in the impugned year are ITA No.1931/Ahd/12 A.Y. 2009-10 (DCIT vs. Gujarat Borosil Ltd.) 4 similar to that of A.Y. 2008-09. We further find that the Co-ordinate Bench in assessee s own case for A.Y. 2008-09, while deciding the appeal of Revenue has decided the issue in favour of assessee by holding as under: 3.4 We have considered the rival submissions and perused the material on record. We find that a refund of ₹ 3.71crore was adjusted .....

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ccount of penalty as claimed by the A.O.but was a routine demand. We are in full agreement with CIT(A) on this point. The assessee has also given note in the "notes to accounts" to the annual account mentioning the facts qua the said demand raised by the Excise Department and adjustment of refund of ₹ 3.71Crore against that demand though not accounted for in the books of accounts. The Hon'ble Supreme Court in the case of CIT vs. Bharat Carbon And Ribbon Manufacturing Co. Pvt. .....

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