The Tax Publishers2019 TaxPub(DT) 7539 (Del-Trib)

INCOME TAX ACT, 1961

Section 43B

Deduction on account of excise duty is allowable only on the basis of actual payment. From records, it could be gauged that assessee had paid an amount of Rs. 74 crores and claimed the same in the profit and loss account. This fact of payment of Rs. 74 crores had been confirmed by excise authorities. The balance sheet did not refelct any outstanding payments by assessee. Hence, keeping in view, the entirety of fact, payment made by assessee on account of excise duty as confirmed by the excise authorities was allowed and disallowance made by invoking section 43B was deleted.

Business disallowance under section 43B - Deduction on actual payment - Difference as per information called for under section 133(6) from Excise Department treated as outstanding payment -

AO called for information under section 133(6) from Excise Department and noticed difference of Rs. 7 lakhs which had been duly paid on 12-2-2013 as per copies of challans furnished. As statutory payments had not been made in time, AO invoked section 43B and made disallowance. Assessee's case was that payment of Rs. 7 lakhs had been paid in protest by assessee as per demand made by excise authorities ohterwise assessee would stand loosing opportunity of applying or tender for continuation of licence of the vend.Held: Deduction on account of excise duty is allowable only on the basis of actual payment. From records, it could be gauged that assessee had paid an amount of Rs. 74 crores and claimed the same in the profit and loss account. This fact of payment of Rs. 74 crores had been confirmed by excise authorities. The balance sheet did not reflect any outstanding payments by assessee. Hence, keeping in view, the entirety of fact, payment made by assessee on account of excise duty as confirmed by the excise authorities was allowed and disallowance made by invoking section 43B was deleted.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 32(1)

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT