2003 (11) TMI 38

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..... manufacture is complete. Such liabilities are shown in the excise duty account maintained by the assessee. The inclusion of excise duty in the valuation of closing stock was permissible only if the liability for that amount in the excise duty account was given a deduction - The substantial question of law that as framed is answered in affirmative in favour of the assessee and against the Revenue. .....

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..... x Act has also made this a very convenient system of accounting. Even according to the Assessing Officer, there was no attempt made by the assessee in changing the system of accounting that had been consistently followed. It is also not the case of the Assessing Officer that the assessee failed to disclose true and correct profits. It has also been consistently held that excise duty need not be .....

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..... t due is included while valuing the closing stock, the result would be anomalous and therefore, the liability was deductible for the purpose of arriving at the profits for the year and only when such deduction was given, the amount could be added to the value of the closing stock and thus, the excise duty liability is not to be included in the valuation of closing stock. Since the excise duty is n .....

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