TaxTMI 
TaxTMI 
2009 (12) TMI 708
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....ases were called for hearing, though a written submission is filed by the authorised representative of the assessee with the request that the same may be considered for deciding the appeals. We have heard the learned Departmental representative for the Revenue. The assessee has raised the following common grounds in its appeals as under : Assessment year Grounds of appeal Amount (Rs.) 2000-01, 2002-03 to 2006-07 1. The learned CIT(A) erred in confirming the addi tions in the absence of any incriminating material found in the course of search 2000-01 2002-03 2003-04 2004-05 2005-06 2006-07 2. Confirmation of addition on inclusion of excise duty....
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.... Co. of India Ltd. [2000] 243 ITR 512 (Mad) ; (ii) CIT v. Dynavision Ltd. [2004] 267 ITR 600 (Mad) ; (iii) ITO v. Food Specialities Ltd. [1994] 206 ITR (AT) 119 (Delhi) [SB]. It was also submitted that in case excise duty is included in the closing stock, then the same should be allowed as deduction if it is paid before the due date of filing the return in terms of section 43B of the Income-tax Act. For this proposition, the assessee relied on the decision of the hon' ble Tribunal in the case of Milestone Organics Ltd. in I. T. A. Nos. 3853 to 3856/ AHD/2007 for the assessment years 1999-2000, 2000-01, 2001-02 and 2003-04 respectively, wherein it was held as under : " 7. After a careful consideration of the rival submissions, facts....
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....losing stock, is not correct. For the sake of convenience, we reproduce section 145A of the Income-tax Act as under : " 145A. Method of accounting in certain cases.-Notwithstanding anything to the contrary contained in section 145, the valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head ' Profits and gains of business or profession' shall be(a) in accordance with the method of accounting regularly employed by the assessee ; and (b) further adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of valuation. Explanati....
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....ing stock. Further the word " incurred" is in association with the word " payment" , therefore, unless goods are taken out for the purposes of sale, i.e., they are cleared from the factory premises, it cannot be said that merely manufacturing of the goods alone will incur a liability for excise duty for the purposes of addition under section 145A. The clearance of the goods from the factory premises is necessary for this purpose. Accordingly, the view taken by the and confirmed by the learned Commissioner of Income-tax (Appeals) is not correct. The addition so made by the and confirmed by the learned Commissioner of Income-tax (Appeals) is deleted. The third issue is regarding addition in respect of household expenses for the assessment ....