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TMI Blog2004 (10) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Central excise duty liability?" - Since assessee follows the mercantile system of accounting and the liability of excise duty imposed is statutory in nature and merely because it has not been paid to the Department it would not disentitle the respondent from claiming its deduction - We answer both the questions referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue - - - - - Dated:- 15-10-2004 - Judge(s) : R. K. AGRAWAL., PRAKASH KRISHNA. JUDGMENT The judgment of the court was delivered by R.K. AGRAWAL J.- The Income-tax Appellate Tribunal, Delhi, has referred the following two questions of law under section 256(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act" for opini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,224 relating to electric installation and maintenance were actually utilized for manufacture of knives. The Income-tax Officer disallowed the claim under section 80J of the Act on the ground that no separate trading and profit and loss account for the said unit has been prepared or furnished and that the manufacture of discs and knives were connected process carried on by the same industrial undertaking and further it had never claimed deduction under section 80J of the Act in the past. During the assessment year 1979-80 the respondent-assessee had claimed a deduction of Rs. 34,975 for the assessment year 1979-80 towards the excise duty. It had debited its books of account but had not actually paid the amount to the Central Excise Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itting up or reconstruction of business already in existence nor by transfer to a new business of machinery or plant previously used for any purpose. The Tribunal has further found that there is no dispute that the other conditions laid down in section 80J(4) of the Act are satisfied and merely because the respondent has not made any claim under section 80J of the Act in respect of this unit for the earlier two years that will not debar the assessee from claiming it in the year under consideration if he is otherwise entitled to it. On the findings given by the Tribunal we do not find any legal infirmity that the two units are separate and independent and have not been formed by reconstruction or splitting up of the existing unit and the res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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