1999 (2) TMI 24

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....IMHA BABU J.---The assessee is a manufacturer of electrical goods. Its accounts are maintained in mercantile system. For the assessment year 1984-85, it had valued its closing stock at cost. The valuation so made, according to the Assessing Officer, was incorrect as it did not include the assessee's liability for payment of excise duty. That view of the Income-tax Officer was confirmed by the Comm....

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....n to that excisable item. That liability of the assessee is a liability which is shown in the excise duty account maintained by the assessee, all payments and liability so incurred towards such duty are being exhibited separately as amounts paid as excise duty or as liability incurred for payment of excise duty. If the argument of the Revenue is to be accepted, the result would be anomalous. Th....