PRINCIPAL COMMISSIONER OF INCOME TAX Vs. ARVIND LIMITED

JUDGEMENT

(1.) Heard learned advocate Mr. Karan Sanghani for M.R. Bhatt and Co. for the appellant.

(2.) By this Tax Appeal under Sec. 260A of the Income Tax Act, 1961 (for short "the Act, 1961"), the appellant Revenue has challenged the order dtd. 30/9/2021 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'B' (for short "the Tribunal") in ITA No. 249/Ahd/2016 for the Assessment Year A.Y. 2010-11. The substantial question of law proposed in this Tax Appeal is as under:

(3.) During the assessment proceedings, the excise duty which was adjusted against securities premium account amounting to Rs.3,67,71,030.00 and Rs.2,83,45,355.00 was sought to be disallowed under Sec. 43B of the Act, 1961. On query, the assessee explained that such claim was not charged to the Profit and Loss account and it has been set off against the share premium account as per the claim of capital reduction sanctioned by the High Court of Gujarat vide order dtd. 15/2/2013 and that being an item of Sec. 43B of the Act, 1961 has been claimed on payment basis.