TMI Blog2002 (9) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... mputing the income of the assessee?" - The fact that the duty paid was not charged to the profit and loss account by itself would not disentitle the assessee from claiming deduction under section 43B. It is open to the assessee to file an adjustment statement before the Assessing Officer. Learned counsel for the Revenue submitted that the duty paid is a legitimate charge on the gross profits when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vinyl chloride, rigid PVC pipes and fittings and other items. The assessee had, in the previous year corresponding to the assessment year 1984-85, imported materials required for the manufacture of the assessee's products. The assessee had paid import duty of Rs. 35,09,826. According to the assessee, the cost of the imported materials inclusive of duty was taken to the profit and loss account only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by the Assessing Officer, the Commissioner and finally by the Tribunal, all of whom took the view that as the amounts paid towards customs duty and excise duty had not been shown separately in the profit and loss account, the deduction could not be given. Section 43B of the Act which provides that certain deductions are to be only on actual payment opens with a non obstante clause in relatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as made. The fact that part of the customs duty was paid in respect of raw materials which remained with the assessee at the end of the year would not deprive the assessee of the benefit of claiming the deduction in the year in which duty had been actually paid. So also the right of the assessee to claim deduction for the amount of excise duty paid in the year in which it was paid is unaffected by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the gross profits when the gross profits has been properly ascertained by valuing the closing stock as also the opening stock including therein the duty paid on such stock. A view similar to the one taken by us has been taken by the Bombay High Court in the case of CIT v. Bharat Petroleum Corporation Ltd. [2001] 252 ITR 43. The assessee had filed before the Assessing Officer the necessary a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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