TMI Blog2012 (7) TMI 1091X X X X Extracts X X X X X X X X Extracts X X X X ..... come on 30.09.2008 admitting total income of ₹ 4,67,42,288/-. The AO completed the assessment under section 143(3) of the Act determining the total income of the assessee company at ₹ 5,87,15,732/-. 3. During the assessment proceedings the AO found that there was a difference of ₹ 1,03,90,361/- as calculated below: Opening stock value shown in the books 14,92,62,209 Add: Relatable duties 2,07,00,265 Total 16,99,62,474 Add: Closing stocks as per books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd gave the workings as to how it has to be recast. The AR of the assessee further submitted before the CIT(A) that the company was following exclusive method of accounting i.e. excise duties on opening stock, purchase, sales and closing stock are not included in the respective accounts. i.e. excise duty is neither credited nor debited to the profit loss account. 8. The CIT(A) held that in the case before him, the confusion has occurred because excise duties component had been added in certain places and not added in others. CIT(A) directed the AO to recast the account with respect to stocks by adding excise duty component in the opening stock, the sales, the relevant purchases as well as the closing stock. He further held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f sub-section (1) of section 36, or d) any sum payable by the assessee as interest on any loan or borrowing from any public financial institution or a State financial corporation or a State industrial investment corporation, in accordance with the terms and conditions of the agreement governing such loan or borrowing, or e) any sum payable by the assessee as interest on any loan or advances from a scheduled bank in accordance with the terms and conditions of the agreement governing such loan or advances, or f) any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee. Shall be allowed (irrespective of the previous year in which the liability to pay such sum was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the appeal the department is in appeal before us and raised following grounds of appeal: 2. Whether the learned CIT(A) is right in holding that the provisions of Sec.195 are not applicable for payment of commission. 3. Whether the learned CIT(A) is right in holding that the provisions of Sec.40(a)(i) are not applicable for commission paid by the assessee to non-residents. 4. Any other ground that may be urged at the time of appeal hearing. 14. We heard both the parties and perused the record. We find that the decision DCIT Vs. Divis Laboratories Ltd. (131 ITD 271) is in favour of the assessee and the same has been followed by the coordinate bench of the Tribunal in the case of DCIT Vs. M/sDivy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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