Law:

Section:

Section 145, read with section 43B, of the Income-tax Act, 1961 - Method of accounting - Valuation of stock - Assessment year 1987-88 - Whether imported raw material is to be valued by including therein amount of customs duty paid and after closing stock is so valued, assessee would be entitled to claim deduction for amount of duty actually paid under section 43B - Held, yes FACTS While considering the claim of the assessee for deduction of the amount of customs duty paid under section 43B, the Assessing Officer disallowed further claim of the assessee for exclusion of the said duty in valuation of closing stock of raw material holding that it was against the principles of accounting and that the closing stock of raw material had to be valued after including the customs duty component. On appeal : HELD In the instant case, it was not clear as to whether the amount paid as duty had been allowed under section 43B. The assessee was required to value the imported raw material by including therein the amount of duty paid and after the closing stock was so valued, the assessee would be entitled to claim the deduction for the amount of duty actually paid under section 43B. [Para 7] Therefore, the Tribunal was right in law in upholding the decision of the Commissioner (Appeals) in directing the Assessing Officer to allow deduction in respect of the customs duty element pertaining to the closing stock but subject to the right of the assessee to receive, if it had not already received, deduction under section 43B for the amount of duty actually paid during the year. [Para 8] CASES REFERRED TO Southern Asbestos Cement Ltd. v. CIT [2003] 259 ITR 631 (Mad.) [Para 5] and Chemicals & Plastics India Ltd. v. CIT [2002] 125 Taxman 648 (Mad.) [Para 6]. Mrs. Pushya Sitaraman for the Appellant. P.P.S. Janardhanaraja and Subbaraya Aiyar for the Respondent. ORDER R. Jayasimha Babu, J. - The assessment year 1987-88. The assessee had imported raw material for use in the process of manufacture made by it. On such imports, customs duty has been paid. 2. The Assessing Officer while considering its claim for deduction of the amount of customs duty paid during the year under section 43B…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492