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2014 (2) TMI 458 - ITAT LUCKNOWDeletion of addition made on account of excise duty – Held that:- The Excise Duty was paid under protest - He was not required to pay the Excise Duty but when the excise authorities have demanded, the assessee had paid the same - the assessee has gone before the Commissioner, Central Excise (Appeals) and won the case but the Department has preferred an appeal before the CEGAT - since the assessee has paid the Excise Duty under protest, it is expenditure incidental to his business and should be allowed u/s 37 of the Act – Relying upon Kedarnath Jute Manufacture Co. vs. CIT [1971 (8) TMI 10 - SUPREME Court] - the liabilities of the Excise Duty accrues on the taxable event taking places viz. manufacture of excisable goods - The liability is on the manufacturer and not ultimately on sellers - It was an enforceable legal liability allowable irrespectively of whether subsequently, exemption granted or the same has been contested in the appeal – there is no specific infirmity has been pointed out in the order of CIT(A) except placing heavy reliance upon the assessment order, the order of CIT(A) confirmed – Decided against Revenue. Deletion of disallowance of payment – Interest on advances and loans – Held that:- The assessee has furnished the details of interest free funds available with it - the assessee was having general reserve besides share capital which was utilized for interest free advances - The Revenue has not placed any evidence on record to establish that the borrowed funds were utilized for interest free advances – thus, no corresponding disallowance can be made – there was no infirmity in the order of CIT(A) – Decided against Revenue.
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