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2015 (2) TMI 1192 - HC - Income TaxInclusion of excise duty in the closing stock - Held that - As decided in Apex Court in the case of Burger Paints India Ltd. vs. Commissioner of Income Tax (2004 (2) TMI 4 - SUPREME Court ) wherein the similar question has been answered against the revenue and infavour of the assessee holding that no addition could be made to the closing stock of the assessee on account of excise duty. - Decided in favour of assessee.
Issues:
1. Whether the Tribunal was justified in allowing the exclusion of excise duty from the value of closing stock? 2. Whether the Tribunal was justified in dismissing the Revenue's appeal without discussing relevant case laws? Analysis: 1. The judgment dealt with an appeal arising from a Tribunal's decision regarding the exclusion of excise duty from the value of closing stock. The first issue revolved around the Tribunal's decision to allow the assessee to exclude excise duty from the closing stock value, even though the assessee claimed a deduction of excise duty on a payment basis under Section 43-B of the Act. The court referred to the Apex Court's decision in Burger Paints India Ltd. Vs. Commissioner of Income Tax, where similar questions were answered against the Revenue and in favor of the Assessee. The court, based on this precedent, concluded that the questions raised were already covered by the Apex Court's decision, thereby answering them against the Revenue and in favor of the Assessee. 2. The second issue involved the Tribunal's dismissal of the Revenue's appeal without discussing the facts of relevant cases or the legal principles applied therein. The counsels for both parties acknowledged that the questions raised had been addressed in the Apex Court's decision, which favored the Assessee. As a result, the court found that the Tribunal's decision to dismiss the Revenue's appeal was justified based on the established legal precedent. Consequently, the court upheld the Tribunal's decision and dismissed the appeal in favor of the Assessee.
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