2003 (12) TMI 50

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.... J.-The question referred to us for consideration is: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the disputed customs duty payable and funded interest payable to the bank, which liabilities pertain to the earlier years, can be allowed as a deduction in computing the profits under section 115J of the Act?" The assessment year ....

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....ent." It was thus clear that in this year the company did not pay any amount as customs duty which it was disputing and in respect of which it had furnished a bank guarantee. It had not provided for this amount presumably as, in its perception, it would succeed in the pending litigation with regard to the sustainability or otherwise of the demand that had been made by the Customs Department as ....

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....ccordance with the provisions of Parts II and III of Schedule VI to the Companies Act, 1956." The other parts of that provision are not required to be set out for the present purpose. What section 115J(1A) contemplates is that the assessee prepares not a balance-sheet but a profit and loss account showing the transactions of the relevant previous year and that such amount be in conformity wi....

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....of the assessee that the account so prepared is in conformity with those provisions. The assessee must stand by its own proclaimed assertion that what it has placed before the Revenue are accounts which conform to Parts II and III of Schedule VI of the Companies Act. The contention raised by the assessee, contrary to what those accounts disclosed, is on the face of it not one which can be enter....