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TMI Blog2022 (2) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... ovember, 2014 along with the notice under Section 142(1) of the Act and sought for calculation of valuation of closing stock and the relevant details were furnished by the assessee along with the letter dated 13th February, 2015 and thereafter the assessing officer having been convinced on the said working, did not make any addition or disallowance under Section 43(B) of the Act on the subject issue. We find that the Tribunal has rightly taken note of the Central Excise returns and noted that one of the units of the assessee was engaged only in job work activity and therefore, not entitled for benefit of input credit and after taking note of the sum paid on the said account, the Tribunal also found that the balance amount was adjusted wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the order dated 20th November, 2018 passed by the Income Tax Appellate Tribunal C Bench, Kolkata (Tribunal) in ITA/954/Kol/2017 for the assessment year 2012-13. The revenue has raised the following substantial questions of law for consideration : 1. Whether the Learned ITAT has committed substantial error in law in not considering that under the provision of Section 43B of the Income Tax Act, 1961 certain payment should be allowed to be claimed as an expenses only in the year in which they have been paid and not in the year in which the liability to pay such sums was incurred. 2. Whether the Learned ITAT erred in law and failed to appreciate the term, object and purpose of the provisions contained in Section 263 of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... direction by passing an assessment order dated 17th July, 2017. The learned standing counsel for the appellant/revenue would draw our attention to the giving effect of the order dated 17th July, 2017 and submits that the excise duty liability cannot be allowed as deduction since it was not actually paid by the assessee during the relevant year. The assessee challenged the order passed by the CIT by filing an appeal before the Tribunal. The Tribunal took note of the submission that the assessee has made provision for excise duty or closing stock of finished goods in respect of various divisions and proceeded to examine the central excise returns and not stopping with the certificate issued by the Tax Auditor in the Audit Report. This exerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oted that one of the units of the assessee was engaged only in job work activity and therefore, not entitled for benefit of input credit and after taking note of the sum paid on the said account, the Tribunal also found that the balance amount was adjusted with the available input credit in the respective divisions which undoubtedly would tantamount to actual payment of excise duty. Thus, we find that the Tribunal rightly granted relief to the assessee and the order does not call for any interference. In the result the appeal filed by the revenue is dismissed and the substantial questions of law are answered against the revenue. (T. S. SIVAGNANAM, J.) I agree. (HIRANMAY BHATTACHARYYA, J.) - - TaxTMI - TMITax - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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