2001 (3) TMI 20

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....ction of Rs. 2,60,283 being staff sports and welfare expenses under section 40A(9) of the Income-tax Act?" The appeal came for admission on March 14, 2001. It was heard at length. It was dismissed for reasons to be subsequently given. Hence, the following reasons are being given. Facts on question No. 1: Bharat Petroleum Corporation Limited, a Central Government under-taking is the assessee. In this appeal we are concerned with the assessment year 1985-86. In the computation of income, the assessee claimed deduction of Rs. 12,62,47,225 under the head "Excise and customs duty paid" on the closing stock as on March 31, 1985. The financial year during which the duties were paid was 1984-85. The said amount was also shown in the balanc....

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....31, 1985. As per the decision of the Gujarat High Court in Lakhanpal National Ltd.'s case [1986] 162 ITR 240, excise and customs duty paid and included in the closing stock are allowable deductions from the income. That, section 43B does not bar such deductions. However, such deductions are subject to payment being added to the opening stock in the relevant subsequent year. We respectfully agree with the judgment of the Gujarat High Court in Lakhanpal National Ltd.'s case [1986] 162 ITR 240. This is a pure finding of fact. The Commissioner of Income-tax (Appeals) has also accepted that the afore stated amount is a part of the closing stock. In view of the concurrent finding of fact, no substantial question of law arises. Hence, the first qu....