TaxTMI 
TaxTMI 
2020 (2) TMI 1220
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....o as "the Act") dt. 07/03/2014 relevant to the Assessment Year 2010- 2011. The assessee has raised the following grounds of appeal. 1. The learned CIT(A) erred in law and facts in upholding the addition made by learned AO on account of reversal of excise duty of Rs, 11,47,325 on the ground that the same was not paid and therefore not allowable under section 43B of the Income-tax Act, 1961 ('the Act'). 2. The learned CIT(A) as well as the learned AO erred in law by doubly taxing the amount of reversal of excise duty which was earlier offered to tax amounting to Rs. 11,47,325 under section 43B of the Act. 2.1 The learned CIT(A) acted contra legem by upholding that the appellant has failed to prove the payment of excise duty wh....
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.... provision of section 43B of the Act. 4.1 However the AO was of the view that the provision of section 43B is applicable where the outstanding liabilities of the previous year have been paid during the year under consideration. However, the assessee did not furnish any documentary evidence in support of its claim made in the return of income. Therefore in the absence of any evidence from which it can be proved that the assessee has made the payment of existing liabilities in the year under consideration, it cannot take shelter of the provision of section 43B of the Income Tax Act. 4.2 The AO also noted that the assessee in the year under consideration had collected excise duty of Rs. 5 Lakhs on sale of finished goods which was not paid to....
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.... The Ld. AR for the assessee before us filed a paper book running from pages 1 to 134 and submitted that it has been following the practice for creating the provision in one year but reversing in the subsequent year. The ld. AR further submitted that the amount of provision created for Rs. 11,47,325.00 has already suffered the tax in the immediate preceding AY. Therefore, the same cannot be taxed in the year under consideration. 8. On the other hand, the learned DR vehemently supported the order of the authorities below. 9. We have heard the rival contentions of both the parties and perused the materials available on record. The issue on hand relates to the disallowance made by the AO on account of reversal of excise duty claimed by the ....