https://www.taxtmi.com/caselaws?id=12024 Whether customs and excise duty actually paid but capitalised in closing stock/current assets, and not debited to the profit and loss account, is deductible under s. 43B was the dominant issue. The HC held that s. 43B mandates deduction in the year of actual payment irrespective of whether the related raw materials or finished goods remain in closing stock, and it does not require separate disclosure or P&L debit as a condition precedent. Inclusion of the duty element in stock valuation does not bar the claim; the assessee may furnish an adjustment statement to the AO to avoid distortion of profits. The reference was answered in favour of the assessee, allowing the deduction. en-us Wed, 04 Sep 2002 00:00:00 +0530 Thu, 08 Jan 2026 10:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12024 Whether customs and excise duty actually paid but capitalised in closing stock/current assets, and not debited to the profit and loss account, is deductible under s. 43B was the dominant issue. The HC held that s. 43B mandates deduction in the year of actual payment irrespective of whether the related raw materials or finished goods remain in closing stock, and it does not require separate disclosure or P&L debit as a condition precedent. Inclusion of the duty element in stock valuation does not bar the claim; the assessee may furnish an adjustment statement to the AO to avoid distortion of profits. The reference was answered in favour of the assessee, allowing the deduction. Case-Laws Income Tax Wed, 04 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12024