9911796707
TMI Blog2014 (9) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue and until pendency of the proceedings - This was therefore not equivalent to the payment - section 43B is entitled as "certain deductions but only on actual payment" - the view taken by the tribunal is in accordance with the legal position as set out in the judgment of the Supreme Court as also in consonance with the wording of section 43B – Decided in favour of revenue. - Income Tax Reference No. 85 of 1997 - - - Dated:- 20-8-2014 - S. C. Dharmadhikari And A. K. Menon,JJ. For the Appellant : None For the Respondent : Mr. Suresh Kumar ORDER P. C. 1. This reference has been made at the instance of the revenue by the Income Tax Tribunal, Bombay Bench. 2. The tribunal passed the common order in Income Tax App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the decision in I.T.A. No.918/Bom/1989 in the case of Jay Pee Dyeing House, Bombay. The order of the tribunal dated 12th January, 1994 in the case of Jay Pee Dyeing House was referred by the tribunal. The revenue contended that the Central Excise duty which is shown as outstanding in the balance sheet will be attracted by the provisions of section 43B of the Act so long it is not paid by the assessee. Thus the argument was that the assessee will not be entitled to claim depreciation by merely relying on the factum of a bank guarantee being furnished in favour of the revenue to meet the demand till the Supreme Court decides the issue. The order of the Supreme Court in that behalf was relied upon by the assessee. 5. Mr.Suresh Kumar su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The disputed tax concerning the levy of excise duty on the fabrics was deposited by the assessee in the Bank of India in the form of fixed deposits. These FDRs were discharged and surrendered to the bank and in turn, the bank issued guarantee in favour of the Government of India. The assessee contended that it has maintained separate accounts where Central Excise amounts are credited and the payments made to the department are debited. According to the assessee the amount was never charged to the profit and loss account and the balance sheet and that was not hit by the provisions of section 43B of the Income Tax Act, 1961. The Assessing Officer held that the provisions of section 43B are applicable notwithstanding such method of accounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tance of the revenue is that whether on the facts and in the circumstances of the case and in law the tribunal has rightly upheld the decision of the Commissioner of Income Tax (Appeals) in deleting addition of ₹ 84,32,764/- made under section 43B of the Income Tax Act, 1961 on account of Central Excise liability appearing in the balance sheet . 11. The question of law would have to be answered in terms of the reasons assigned above in favour of the revenue and against the assessee. 12. The tribunal has also referred the following questions at the instance of the assessee : (i) Whether on the facts and in the circumstances of the case the Tribunal was right in holding that Excise Duty collected by the company was a trading ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
