TMI Blog2016 (8) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... There is no question of double deduction, as deduction under Section 43B of the Act is allowable only on actual payment. The actual payment of ₹ 877.38 lakhs has admittedly been done during the previous year relevant to the subject assessment year for which the deduction is claimed. There could be no occasion of making the same payment of ₹ 877.38 lakhs on duties/taxes in future. This is so as the payment has been made in the previous year relevant to the subject assessment year. Accordingly question covered by the decision of the Apex Court in Berger Paints India Ltd. (2004 (2) TMI 4 - SUPREME Court ). Accordingly, both the questions are answered in the negative i.e. in favour of the assessee - Income Tax Reference No. 177 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned counsel for the Revenue very fairly states that the issue raised herein viz. the sales tax collected by the assessee in the last quarter of the year was paid in the subsequent quarter before filing of the return, is to be allowed as a deduction in view of Section 43B of the Act, stands concluded against the Revenue by the decision of the Apex Court in Allied Motors (P.) Ltd. v/s. Commissioner of Income Tax 224 ITR 677. (b) In the above view, the question is answered in the affirmative i.e. in favour of the assessee and against the Revenue. 3. Regarding Question nos.(ii) and (iii)- The brief facts are as under: (a) The assessee claimed that the excise duty aggregating to ₹ 877.38 lakhs which was included in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecisions the deduction in respect of excise duty paid during the previous year relevant to the subject assessment year under Section 43B of the Act was allowed even though the same was included in arriving at the cost of the closing stock. (d) However, the Revenue contests the aforesaid position by emphasizing the fact that the respondent-assessee had adopted the cost price method of valuing of its closing stock. Therefore, the entire cost has to be included in the closing stock which includes the excise duty which has been paid. Therefore no deduction under Section 43B of the Act is permissible. This would, according to the learned counsel for the Revenue lead to a double deduction of excise duty. The distinction sought to be made by Mr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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