ITO, Ward – 1, Ahmednagar Vs. Karmaveer Shankarrao Kale Sahakari Sakhar Karkhana Ltd.

Parties Involved

Facts Summary

The assessee filed its return of income on 15.09.2017 declaring a loss of Rs.4,95,65,852/-. The Assessing Officer processed the return on 21.03.2019 and made an addition of Rs.9,58,23,576/-. The assessee claimed a deduction of Rs.9,38,05,094/- for excise duty paid on closing stock of finished goods as on 31.03.2016, which was added in the assessment year 2016-17 but paid in 2017-18. The CIT(A) directed the Assessing Officer to verify the claim and pass the necessary rectification order if found correct.…

Legal Issues

• 1. Whether the CIT(A) is legally justified in considering the assessee's claim of deduction u/s 43B of the Income Tax Act, 1961 of Rs.9,38,05,094/- only on the basis of the certificate of the C.A., without any documentary evidence to substantiate the same?
• 2. Whether the Ld.CIT(A) is legally justified in directing the AO to verify the claim of the assessee and to allow it after verification?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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