9911796707
TMI Blog2013 (4) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... r provisions of section 145A. 2. Whether on the facts and in the circumstances of the case,Ld. CIT(A) was justified in allowing expenditure of Rs.24,86,49,451/-on account of interest paid on capital borrowed, when the capital borrowed was used to give interest free loans to subsidiary and other companies." 3. Ground no.1 in this appeal relates to the addition of excise duty payable on closing stock as per the provisions of section 145A of the Act. In respect of this issue both the parties agreed that this similar issue has arisen in ITA No.126/Kol/2006 for A.Year 2001-02. 4. After hearing both the parties and carefully considering the rival submissions, we note that this ground is similar to that of ground raised by the Revenue in ITA No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant date for the duty liability is the date on which the goods are cleared. In other words, in respect of excisable goods, manufactured and lying in stock, the excise duty liability would get crystallised on the date of clearance of goods and not on the date of manufacture. The assessee was engaged in the business of manufacture and sale of white sugar. In the assessment year 2001-02 the Assessing Officer held that the excise duty on sugar manufactured but not sold and lying in closing stock was a liability incurred by the assessee under section 145A(b) and had to be considered for disallowance under section 43B of the Act. The Tribunal deleted the addition. On appeal to the High Court: Held, that the manufactured sugar was lying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilar issue to the file of the AO to decide the issue afresh, as per the direction of the Hon'ble High Court for the assessment year 1994-95. Since the order of this Tribunal in ITA No.268/Kol/2004 relating to the assessment year 1998-99 is the latest on this issue and it is the fact that similar issue is pending for disposal before the Hon'ble High Court, we, respectfully following the decision of this Tribunal in ITA No.268/Kol/2004 for the assessment year 1998-99, set aside the order of the CIT(A) and restore this issue to the file of the AO with the direction that the AO shall re-decide this issue, as per direction of the Hon'ble High Court for the assessment year 1994-95. This ground, therefore, stands allowed for statistical purposes." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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