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Commissioner of Income Tax, Delhi Versus Maruti Udyog Ltd.

2017 (12) TMI 536 - DELHI HIGH COURT

Addition u/s 43B - unutilized MODVAT credit of earlier years adjustment - Held that:- This question is answered in the negative, i.e. in favour of the Revenue and against the Assessee. See Maruti Udyog Ltd. Versus Commissioner of Income Tax, Delhi [2017 (12) TMI 590 - DELHI HIGH COURT] - Addition u/s 43B - sales tax paid on raw material and computers in the preceding assessment years - Held that:-Sales tax paid on raw material in the preceding AY was rightly allowed as a deduction in the cur .....

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mative i.e. in favour of the Assessee and against the Revenue. - Addition of duty drawback - Held that:- The issue of duty drawback in any event is answered in favour of the Assessee by the decision in Commissioner of Income Tax v. Excel Industries [2013 (10) TMI 324 - SUPREME COURT ] where it was held that “income accrues when it becomes due but it must also be accompanied by a corresponding liability of the other party to pay the amount. Only then can it be said that for the purposes of ta .....

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HIGH COURT) - Decided in favour of the Assessee and against the Revenue. - Addition u/s 14A - Held that:- Assessee was seized of sufficient funds which it could have invested and therefore, there was no question of disallowance of any amount on account of interest under Section 14A of the Act. Both questions are therefore, answered in the affirmative, i.e. in favour of the Assessee - AO was not justified in making the addition on account of excessive consumption of raw material/inputs f .....

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le giving effect to the ITAT’s order, ensure that no double deduction is allowed. Therefore, he will ensure that the deduction allowed in this year under Section 43B of the Act is included in the income of the next year when such opening stock is disposed of. - ITA No. 250/2005 - Dated:- 7-12-2017 - MR. S. MURALIDHAR AND MR. PRATHIBA M. SINGH, JJ. For The Petitioner : Mr. Ruchir Bhatia, Senior Standing Counsel, Mr. Puneet Rai, Junior Standing Counsel and Mr. Gaurav Kheterpal, Advocate For The Re .....

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ct of some of issues which have been held in favour of the Assessee and against the Revenue. 3. By the order dated 24th April 2006, the following questions of law were been framed by this Court: i. Whether the ITAT is right in law in holding that unutilized MODVAT credit of earlier years amounting to ₹ 77,55,78,738/- adjusted in the assessment year in question should be treated as actual payment of excise duty under Section 43B of the Income Tax Act, 1961 ( Act )? ii. Whether the ITAT is r .....

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/- on account of duty drawback had not accrued and become payable to the assessee and cannot be included in the taxable income of the Assessee for the AY 1999-2000? v. Whether the ITAT is right in holding that customs duty of ₹ 2.99 crore paid on 28.4.1999 can be capitalised with retrospective effect and depreciation should be calculated by including the said amount in the AY 1999-2000? vi. Whether the ITAT has correctly interpreted Section 14A of the Act and is right in holding that onus .....

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- in respect of customs duty paid and debited to the profit and loss account cannot be included in the value of the closing stock in view of Sections 43B and 145A of the Act? 4. As far as Question (i) is concerned, in view of the order passed by this Court in ITA No. 31 of 2005 upholding the impugned order of the ITAT on this issue, the question is answered in the negative, i.e. in favour of the Revenue and against the Assessee. 5. As far as Question (ii) is concerned, sales tax paid on raw mate .....

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he AY in question. Consequently, it was correctly allowed as a deduction by the ITAT. Question (iii) therefore, is answered in the affirmative i.e. in favour of the Assessee and against the Revenue. 7. Question (iv) pertains to duty drawback. On this issue, this matter has been remanded by the ITAT which, according to the Court, was not necessary to do so. The issue of duty drawback in any event is answered in favour of the Assessee by the decision in Commissioner of Income Tax v. Excel Industri .....

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sent case is concerned, even if it is assumed that the Assessee was entitled to the benefits under the advance licences as well as under the duty entitlement pass book, there was no corresponding liability on the customs authorities to pass on the benefit of duty free imports to the Assessee until the goods are actually imported and made available for clearance. The benefits represent, at best, a hypothetical income which may or may not materialise and its money value is therefore not the income .....

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(P) Ltd. [2009] 312 ITR 254 (SC); CIT v. Funskool (India) Ltd. (2007) 294 ITR 642 (Mad.); CIT v. Noida Medicare Centre Ltd (2015) 378 ITR 65(Del) and DGIT v. Official Liquidator (2008) 305 ITR 418(Mad.), question (v) is answered in the affirmative i.e. in favour of the Assessee and against the Revenue. 10. As regards Questions (vi) and (vii), they pertain to Section 14A of the Act. Both the issues are no longer res integra. As far as Question (vi) is concerned, it is covered in favour of the Ass .....

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