https://www.taxtmi.com/caselaws?id=15290 Whether excise duty liability could be included in valuing closing stock was the dominant issue. The HC held that an accrued excise duty liability remains a liability and cannot be treated as an asset merely by inflating the closing stock value. Proper accounting requires the duty liability to be shown separately as a liability incurred during the year, which must be allowed as a deduction in computing profits; only if such deduction is granted can a corresponding amount be added to closing stock to maintain consistency. As the challenge sought inclusion without the requisite separate recognition and deduction of liability, the petition was dismissed. en-us Tue, 09 Feb 1999 00:00:00 +0530 Thu, 18 Dec 2025 17:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15290 Whether excise duty liability could be included in valuing closing stock was the dominant issue. The HC held that an accrued excise duty liability remains a liability and cannot be treated as an asset merely by inflating the closing stock value. Proper accounting requires the duty liability to be shown separately as a liability incurred during the year, which must be allowed as a deduction in computing profits; only if such deduction is granted can a corresponding amount be added to closing stock to maintain consistency. As the challenge sought inclusion without the requisite separate recognition and deduction of liability, the petition was dismissed. Case-Laws Income Tax Tue, 09 Feb 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15290