TMI Blog2024 (2) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome for Assessment Year 1986- 1987, appellant had claimed the deduction in respect of excise duty being the differential excise duty attributable to opening and closing stock of the finished goods held by them during the previous year ended 29th December 1985. Excise duty paid and included in the closing stock has to be claimed separately as a deduction otherwise appellant would not be claiming the entire excise duty paid in the year of its payment. Section 43B of the Act, which came to be introduced from Assessment Year 1984- 1985 onwards, provides that the excise duty would be deductible only on the payment basis in the year in which it is actually paid. Therefore, while computing the total income for Assessment Year 1986-1987, asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 60,99,426/- representing the excise duty claimed under Section 43B of the Income Tax Act, 1961 as this would amount to double deduction ? 3. The ITAT in its impugned order dated 19th August 2002, on the issue at hand, came to a factual finding that the Assessing Officer ( AO ), by allowing deduction of Rs. 980.74 lakhs has allowed Rs. 60,99,426/- as part of Rs. 2,08,08,346/- and therefore, if that amount of Rs. 60,99,426/- was again allowed in the assessment, it would amount to double deduction, which is not permissible. The Tribunal also relied upon a judgment of the Calcutta High Court in the case of CIT v. Burger Paints (India) Ltd. 254 ITR 498., to come to the conclusion that assessee was not entitled to the deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 679/- This would show that the excise duty amounting to Rs. 2,08,08,346/- was transferred to pre-paid account and added to the closing stock of finished products. If the opening balance of Rs. 1,47,08,920/- is reduced, that would leave a sum of Rs. 60,99,426/- in the pre-paid account. 6. While computing the total income for Assessment Year 1986- 1987, appellant had claimed the deduction in respect of excise duty amounting to Rs. 60,99,426/- being the differential excise duty attributable to opening and closing stock of the finished goods held by them during the previous year ended 29th December 1985. Excise duty paid and included in the closing stock has to be claimed separately as a deduction otherwise appellant would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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