2007 (6) TMI 161

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....KARAN, J.-1.    This appeal is directed against the order of the Income Tax Appellate Tribunal, Madras, 'B' Bench dated 7.11.2003 made in I.T.A.No.320/Mds/1997 for the assessment year 1993-94, raising the following substantial questions of law: "(i)   Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that  a sum of R....

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.... the Revenue,  following CIT v. English Electric Co. of India Ltd., [2000] 243 ITR 512(Mad) held that the excise duty liability is not to be included in the valuation of closing stock.  Hence, the present appeal raising the substantial questions of law referred to above. 4.   When the matter was taken up for final hearing today, Mrs.Pushya Sitaraman, learned Senior Standing ....

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....of the assets held by the assessee in the form of higher value assigned to the closing stock. A liability could not be converted into an asset in that manner. A liability was an item deductible for the purpose of arriving at the profits for the year and only when such deduction was given the amount could be added to the value of the closing stock. " 6. Following the ratio laid down in the decis....