https://www.taxtmi.com/caselaws?id=458213 The ITAT Amritsar ruled in favor of the assessee regarding excise duty refund taxability. The tribunal held that hypothetical/notional entries in books of accounts following mercantile system do not constitute real accrual of income for tax purposes. Citing SC precedents in Godhra Electricity and Satluj Cotton Mills, the tribunal emphasized that book entries alone cannot determine taxable income - the true nature of transactions must be considered. The tribunal deleted additions made under section 2(24)(xviii), finding that excise duty exemption does not fall within the statutory definition which specifically lists subsidy, grant, cash incentive, duty drawback, waiver, concession, and reimbursement but excludes "exemption." The appeal was allowed. en-us Thu, 15 Jun 2023 00:00:00 +0530 Tue, 15 Oct 2024 20:00:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458213 The ITAT Amritsar ruled in favor of the assessee regarding excise duty refund taxability. The tribunal held that hypothetical/notional entries in books of accounts following mercantile system do not constitute real accrual of income for tax purposes. Citing SC precedents in Godhra Electricity and Satluj Cotton Mills, the tribunal emphasized that book entries alone cannot determine taxable income - the true nature of transactions must be considered. The tribunal deleted additions made under section 2(24)(xviii), finding that excise duty exemption does not fall within the statutory definition which specifically lists subsidy, grant, cash incentive, duty drawback, waiver, concession, and reimbursement but excludes "exemption." The appeal was allowed. Case-Laws Income Tax Thu, 15 Jun 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458213