Method of accounting requires inventory valuation to include taxes and duties actually paid, altering taxable business income. Valuation of purchases, sales and inventory shall follow the assessee's regular method of accounting but must be adjusted to include any tax, duty, cess or fee actually paid or incurred to bring goods to their location and condition as on the valuation date; such payments are included notwithstanding any consequential rights. Interest on compensation is taxable in the year it is received.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Method of accounting requires inventory valuation to include taxes and duties actually paid, altering taxable business income.
Valuation of purchases, sales and inventory shall follow the assessee's regular method of accounting but must be adjusted to include any tax, duty, cess or fee actually paid or incurred to bring goods to their location and condition as on the valuation date; such payments are included notwithstanding any consequential rights. Interest on compensation is taxable in the year it is received.
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