COMMISSIONER OF INCOME TAX Vs. ENFIELD INDIA LTD

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal has stated a case and referred the following question of law for our consideration:

(2.) THE assessment year involved is 1985-86. The assessee is a company engaged in the business of manufacture and sale of two wheelers and Agro Engineers. The assessee claimed Rs. 19,14,678/- and Rs. 42,52,538/- being excise duty and customs duty payments included in the value of the closing stock. The claim was disallowed by the assessing officer. Hence, the assessee went on appeal before the Commissioner of Income Tax (Appeals), who, relying on the decision of the Gujarat High Court in LAKHANPAL NATIONAL LTD. , VS. COMMISSIONER OF INCOME TAX (162 ITR 240) held that the deduction claimed under Section 43b of the Act is admissible and allowed the appeal. On appeal by the Revenue, the appellate Tribunal following the decision of the Special Bench of the Tribunal in the case of INDIAN COMMUNICATION NETWORK P. LTD V. IAC (206 ITR 96) (AT), confirmed the order of the Commissioner of Income Tax (Appeals ). It is against the order of the Income-tax Appellate Tribunal, at the instance of the Revenue, the Income-tax Appellate Tribunal has stated a case and referred the question of law referred to above.

(3.) HEARD the learned Senior standing counsel Mrs. Pushya Sitaraman, for the applicant, who, in her fairness states that the issue involved in the above question of law is answered against the Revenue by the Supreme Court in the decision rendered in BERGER PAINTS INDIA LTD. , VS. COMMISSIONER OF INCOME TAX (266 ITR 99 ).