COMMISSIONER OF INCOME TAX Vs. XOMOX INDIA LTD

JUDGEMENT

(1.) THE asst. yr. 1987-88. The assessee had imported raw material for use in the process of manufacture made by it. On such imports, customs duty has been paid.

(2.) THE AO, while considering its claim for deduction of the amount of customs duty paid during the year under S. 43B of the IT Act, held that though that claim was in order, the assessee's further claim for exclusion of customs duty in the valuation of closing stock of raw material was against the principles of accounting and that the closing stock of raw material had to be valued after including the customs duty component. He went on the observe, "both these amounts are not considered for the computation of total income for the year."

(3.) ON further appeal, the Tribunal affirmed the order of the CIT(A).