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TMI Blog2014 (3) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... ory - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... he component of Excise duty liability. The AO referred to the decision of the Hon'ble Supreme Court in Moriroku Ut India (P) Limited v. State of Uttar Pradesh [2008] 4 SCC 548 wherein it was held that the levy of Excise duty was on the taxable event of manufacture and is calculated on the value of manufacture goods. The AO also referred to the decision of the Hon'ble Apex Court in CIT vs. British Paints India Ltd. (1991) 188 ITR 44 to the effect that the valuation of stockin Itrade should include all associated costs so as not to give a distorted picture of the true state of the business for the purpose of computing the chargeable income for the year under consideration. In the above case, it was held by the Hon'ble Apex Court t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6. We have heard both the counsel and perused the records. Ld. Counsel of the assessee submitted that the issue as to whether the excise duty is included in the closing stock has been considered by the Hon'ble Apex court and the Hon'ble Jurisdictional High Court and another Hon'ble High Courts. He claimed that it has been decided that excise duty is not to be included in the value of closing stock. In this regard, he referred to the following cases laws and short notes:- - "CIT vs. Dynavision Ltd. (2012) 348 ITR 380 (SC) Valuation of stock - Excise duty not includible in valuing closing stock - Income Tax Act, 1961 Where, on the ground that the assessee had not included in the closing stock the element of excise duty the AO added a su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Bombay High Court in the case of CIT vs. Loknete Balasher Besai S.S. K Ltd. 339 ITR 288 had the occasion to examine the issue and the effect of amendment of section 145A w.e.f. 1.4.1999. The Hon'ble High Court has expounded as under:- "Section 145A of the Income Tax Act, 1961, was inserted by the Finance (No. 2) Act, 1998, with effect from April 1, 1999. It provides for valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head "Profits and gains of business or profession". The expression "incurred by the assessee" in section 145A(b) is followed by the words "to bring the goods to the place of its location and condition as on the date of valuation". Thus, the expression "i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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