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of <h1>Deductibility allowed for Central Excise PLA pre-year end; MODVAT unutilized and Section 43B sales tax disallowed; software expensed</h1> <h3>MARUTI UDYOG LTD. Versus COMMISSIONER OF INCOME TAX, DELHI</h3> HC allowed the claim that amounts deposited into the Central Excise Personal Ledger Account before year-end were deductible, ruling for the assessee. The ... Disallowance of the amount deposited by the Appellant in its Central Excise Personal Ledger Account (PLA) before end of the relevant accounting year - assessee has already incurred liability of excise duty of a much higher value - HELD THAT:- In view of the decision of this Court today [2017 (12) TMI 590 - DELHI HIGH COURT] Question is answered in the affirmative, i.e. in favour of the Assessee and against the Revenue. Disallowance of the amount which represented MODVAT credit of excise duty that remained unutilized by end of the relevant accounting year - Question (ii) is answered in the negative, i.e. in favour of the Revenue and against the Assessee in view of the decision of this Court in [2017 (12) TMI 590 - DELHI HIGH COURT] Disallowance in respect of Sales Tax Recoverable account, under Section 43B - Question answered in the negative, i.e. in favour of the Revenue and against the Assessee. Disallow the software expenditure incurred by the Appellant as revenue expenditure - Question answered in the affirmative, i.e. in favour of the Assessee and against the Revenue. Appeal by the Assessee against the impugned order dated 28th March 2005 passed by the Income Tax Appellate Tribunal in ITA No.678/Del/2004 for AY 2000-01. Questions of law framed: 'i. Whether the ITAT erred in law in confirming the disallowance of the amount of Rs.2,93,59,644/- deposited by the Appellant in its Central Excise Personal Ledger Account (PLA) before 31.3.2000 i.e. the end of the relevant accounting year even though the assessee has already incurred liability of excise duty of a much higher value? ii. Whether the ITAT had committed an error of law in upholding the disallowance of the amount of Rs.65,43,26,890/- which represented MODVAT credit of excise duty that remained unutilized by 31.3.2000 i.e. the end of the relevant accounting year? iii. Whether the ITAT has committed an error of law in upholding the disallowance of Rs.3,57,51,194/- in respect of Sales Tax Recoverable account, under Section 43B of the Income Tax Act? iv. Has not the ITAT erred in law in failing to allow the software expenditure of Rs.1,82,71,588/- incurred by the Appellant as revenue expenditure?' Answers: (i) affirmed in favour of the Assessee and against the Revenue (per decision in ITA No.31 of 2005). (ii) answered in the negative (in favour of the Revenue) in view of ITA No.31 of 2005. (iii) answered in the negative (in favour of the Revenue). (iv) answered in the affirmative (in favour of the Assessee). ITA No.442 of 2005 disposed of accordingly.
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