TMI Blog2020 (2) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... rsed in the year under consideration. Accordingly we set aside the finding of the Ld. CIT-A and direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is allowed. - ITA No.135/AHD/2017 - - - Dated:- 20-1-2020 - Shri Rajpal Tadav, Judicial Member And Shri Waseem Ahmed, Accountant Member For the Assessee : Shri Sanjay R. Shah, A.R For the Revenue : Shri Dileep Kumar, Sr. D.R ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax(Appeals)-2, Vadodara dated 21/10/2016 ( in short Ld.CIT(A) ) arising in the matter of assessment order passed under s. 143(3) r.w.s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised by the assessee is that the Ld. CIT-A erred in confirming the action of the AO on account of addition of reversal of excise duty amounting to ₹ 11,47,325.00 under section 43B of the Income Tax Act. 3. The brief facts of the case are that the assessee is engaged in the business of manufacturing and trading of gear boxes, motors and inverters etc. The assessee also works as an agent of foreign company for distribution of gear motors/boxes and inverters etc. 4. The assessee in the year under consideration had shown in clause 21(i)A 21(i)B of Annexure IV of audit report as unpaid liability on 1st April, 2009 on account of excise duty amounting to ₹ 11,47,325.00 which was paid/adjusted during the year on various dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us year 2008-09 relevant to the assessment year 2009-10. Accordingly the provision for excise duty of ₹ 11,47,325.00 has been disallowed under section 43B in computation of income for the said assessment year whereas in the next year i.e. previous year 2009-10 relevant to the assessment year 2010-11 the same has been reversed and claimed deduction as the same has been offered to tax in the previous year 2008-09 relevant to assessment year 2009-10. 6. However the Ld. CIT-A observed that the assessee did not bring anything on record that the payment has been made against the provision of excise duty amounting to ₹ 11,47,325.00 made in the previous year 2008- 09. Therefore the Ld. CIT-A accordingly confirmed the addition on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08-09 corresponding to the assessment year 2009-10 which is placed on page no. 45 of the paper book. Similarly, the assessee in the year under consideration reversed the provision created in the previous year 2008-09 by crediting the profit and loss account. Accordingly the assessee claimed the deduction in the computation of income for the impugned amount of excise duty. This fact can be verified from the computation of income for the year under consideration which is placed on page no. 55 of the paper book as reproduced below: Deduction claimed on payment basis (u/s. 43B)/on reversal of provision in respect of following expenses disallowed in earlier years Bonus 352,938 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
