9911796707
TMI Blog2012 (7) TMI 1091X X X X Extracts X X X X X X X X Extracts X X X X ..... n 30.09.2008 admitting total income of ₹ 4,67,42,288/-. The AO completed the assessment under section 143(3) of the Act determining the total income of the assessee company at ₹ 5,87,15,732/-. 3. During the assessment proceedings the AO found that there was a difference of ₹ 1,03,90,361/- as calculated below: Opening stock value shown in the books 14,92,62,209 Add: Relatable duties 2,07,00,265 Total 16,99,62,474 Add: Closing stocks as per books 21,03,01,437 Relatable duties 3,10,90,626 Total 24,13,92,063 The difference in the value of closing stock after exclusion of relatable difference being increase in stocks works out as under: Closing stock as per books ₹ 24,13,92,063 Less: Opening st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... component in purchases is to be restricted to the amount of relevant excise duty actually paid on the purchases as per section 43B of the Act. The CIT(A) gave direction that with this recasting, if there is any difference it is to be added back and if there is no difference, then no addition is to be made. 9. The department has filed an appeal before us raising the following ground of appeal: "The CIT(A) erred in allowing assessee's ground of appeal relating, valuation of stock by invoking provisions of section 43B. The Assessing Officer has rightly invoked the provisions of section 145 for valuation of stock. 10. We have heard the arguments of both the parties and perused the record as well as gone through the orders of the authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computing the income referred to in section 2B of that previous year in which such sum is actually paid by him:" 11. We are of the opinion that the purpose of section 43B is to allow deduction for certain expenses only on actual payment since excise duty has to be paid to the Government, the component included in the sales should be allowed as debit in the P&L A/c and the debit should only be to the extent of excise duty actually paid to the Government account in time. Hence, we confirm the order of the CIT(A) on this issue and dismiss the ground of appeal of the revenue. 12. Another issue is with respect to addition of ₹ 7,49,905/- on account of sales commissions paid to commission agents in Tanzania. On appeal, the CIT(A) held t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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