COMMISSIONER OF INCOME TAX Vs. MODIPON LTD

JUDGEMENT

(1.) THE present appeal, which pertains to asst. yr. 1989-90, raises the following questions of law :

(2.) LEARNED counsel for the respondent/assessee concedes that insofar as the first question is concerned, since in the subsequent assessment years, the addition made by the Department has been accepted by the assessee. Question No. 1 be answered in favour of the Department. It is ordered accordingly.

(3.) THIS leaves us with only question No. 3. Ms. Bansal opposes the deduction of excise duty paid in advance in the relevant assessment year. The submission is premised on the learned counsel's understanding that there is no payment of excise duty to the State. In support of her argument, recourse has been taken to the provisions of S. 43B of the IT Act, 1961 (in short the 'IT Act') and r. 173G of the Central Excise Rules, 1944 (in short C.E. Rules). To be noted S. 43B was inserted in the IT Act w.e.f. 1st April, 1984. The relevant portion of the provision reads as under :