https://www.taxtmi.com/caselaws?id=275597 Excise duty on finished goods included in closing stock was not required to be added for income-tax valuation where, under the Central Excise Act scheme, the liability became enforceable only on removal of the goods and was not yet due and payable. The article applies the settled stock-valuation rule that closing stock is valued at cost or market price, whichever is lower, and that unrealised liabilities are excluded unless a statute clearly mandates inclusion. Section 145A of the Income-tax Act was stated to be inapplicable to the assessment year in question, and accounting treatment could not override the statutory position. The assessee's valuation was therefore upheld and the revenue's addition not sustained. en-us Tue, 06 Apr 2010 00:00:00 +0530 Tue, 09 Oct 2018 15:35:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=275597 Excise duty on finished goods included in closing stock was not required to be added for income-tax valuation where, under the Central Excise Act scheme, the liability became enforceable only on removal of the goods and was not yet due and payable. The article applies the settled stock-valuation rule that closing stock is valued at cost or market price, whichever is lower, and that unrealised liabilities are excluded unless a statute clearly mandates inclusion. Section 145A of the Income-tax Act was stated to be inapplicable to the assessment year in question, and accounting treatment could not override the statutory position. The assessee's valuation was therefore upheld and the revenue's addition not sustained. Case-Laws Income Tax Tue, 06 Apr 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=275597