TMI Blog2007 (6) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... - P. D. DINAKARAN and P. P. S. JANARTHANA RAJA JJ. JUDGMENT The judgment of the court was delivered by P.D.DINAKARAN, J.-1. This appeal is directed against the order of the Income Tax Appellate Tribunal, Madras, 'B' Bench dated 7.11.2003 made in I.T.A.No.320/Mds/1997 for the assessment year 1993-94, raising the following substantial questions of law: "(i) Whether on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer. 3. The Tribunal, in the appeal preferred by the Revenue, following CIT v. English Electric Co. of India Ltd ., [2000] 243 ITR 512(Mad) held that the excise duty liability is not to be included in the valuation of closing stock. Hence, the present appeal raising the substantial questions of law referred to above. 4. When the matter was taken up for final hearing to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee's liability for payment of duty could not be regarded as part of the assets held by the assessee in the form of higher value assigned to the closing stock. A liability could not be converted into an asset in that manner. A liability was an item deductible for the purpose of arriving at the profits for the year and only when such deduction was given the amount could be added to the value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the factory should not be included while valuing the closing stock. Accordingly, we answer the first substantial question of law raised in favour of the assessee and against the Revenue. 8. As far as the second substantial question of law raised is concerned, the same being only consequential, we are of the considered opinion that the same need not be answered. 9. In the result, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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