2011 (6) TMI 48

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....Section 145A of the Income Tax Act, 1961 the excise duty element cannot be added to the value of unsold sugar lying in stock on the last day of the accounting year ? "   2. By consent, appeal is taken up for final hearing.   3. The assessment year involved is AY 2001-02.   4. The assessee is engaged in the business of manufacture and sale of white sugar. In the assessment year in question, the assessing officer held that the excise duty on sugar manufactured but not sold and lying in closing stock was a liability incurred by the assessee under Section 145A(b) of the Income Tax Act, 1961 ('the Act' for short) and has to be considered for disallowance under section 43B of the Act.   5. On appeal filed by the as....

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....d   (b) further adjusted to include the amount of 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. Explanation - For the purposes of this section, any tax, duty, cess or fee (by whatever name called) under any law for the time being in force, shall include all such payments notwithstanding any right arising as a consequence to such payment. "   9. The expression 'incurred by the assessee' in Section 145A(b) is followed by the words 'to bring the goods to the place of its location and condition as on the date of valuation'. Thus, the expression 'incurred by the assessee' relates to the liabil....