COMMISSIONER OF INCOME TAX vs. M/S MODI RUBBER LTD.

PDF · subscribers
ITA - 550 / 2005HC Delhi22 November 20051 pages
For Petitioner: PL BANSAL, VISHNU SHARMA
AI SummaryRemanded

What did the High Court hold?

The High Court admitted the appeal filed by the Commissioner of Income Tax and formulated a substantial question of law. The question framed is whether the ITAT was correct in its holding that customs duty, excise duty, and other duties paid on finished goods, raw materials, and spare parts should not be included in the value of the closing stock for the purpose of giving full effect to Section 43B of the Income Tax Act, 1961. The High Court has not yet decided this question on merits in this excerpt. The judgment indicates that the appeal will be posted for hearing along with another appeal, ITA No.189/2001. Therefore, the specific finding of the High Court on the substantial question of law, the reasoning, and the operative directions are not available in this document.

What were the facts?

This case involves an appeal by the Commissioner of Income Tax (Petitioner) against an order passed by the Income Tax Appellate Tribunal (ITAT) concerning M/s Modi Rubber Ltd. (Respondent). The appeal pertains to assessment year(s) not explicitly stated in this excerpt. The core issue revolves around the ITAT's decision regarding the valuation of closing stock. The Petitioner sought to challenge the ITAT's ruling on whether customs duty, excise duty, and other duties paid on finished goods, raw materials, and spare parts should be included in the value of closing stock to give full effect to Section 43B of the Income Tax Act, 1961. The High Court admitted the appeal and formulated a substantial question of law.

What were the issues?

1. Whether the ITAT was right in holding that customs duty, excise duty and other duties paid on the finished goods, raw material and spare parts etc. should not be included in the value of the closing stock to give full effect to Section 43(B) of the Income Tax Act, 1961? Assessee's Contentions: The judgment does not record any specific contentions made by the assessee (M/s Modi Rubber Ltd.) in this excerpt. Revenue's Contentions: The revenue (Commissioner of Income Tax) contends that customs duty, excise duty, and other duties paid on finished goods, raw materials, and spare parts should be included in the value of closing stock to ensure full effect is given to Section 43B of the Income Tax Act, 1961. The revenue is challenging the ITAT's decision on this point.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 550/2005 . COMMISSIONER OF INCOME TAX ..... Petitioner Through : Ms. P.L. Bansal, Adv. with Mr. Vishnu Sharma, Adv. versus . M/S MODI RUBBER LTD. ..... Respondent Through : Mr. S.K. Aggarwal, Adv. . CORAM: HON'BLE MR. JUSTICE T.S. THAKUR HON'BLE MR. JUSTICE B.N.CHATURVEDI . O R D E R 22.11.2005 CM No.10290/2005 Heard. Exemption is allowed subject to just exceptions. CM No.10290/2005 is disposed of. CM No.10291/2005 Heard. For the reasons stated in the application delay in refiling the appeal is condoned. CM No.10291/2005 is disposed of. ITA No.550/2005 ADMIT. The Following substantial question of law is formulated for . ITA No.550/2005 page 1 of 2 determination: ? Whether ITAT was right in holding that customs duty, excise duty and other duties paid on the finished goods, raw material and spare parts etc. should not be included in the value of the closing stock to give full effect to Section 43 (B) of the Income Tax Act, 1961?? The appellant shall file within three months the requisite number of paper books in accordance with High Court Rules. Post for hearing alongwith ITA No.189/2001 in due course. . . T.S. THAKUR, J . . B.N.CHATURVEDI, J NOVEMBER 22, 2005 sa . ITA No.550/2005 page 2 of 2 .

More judgments on Section 43B

All 7,161 judgments and leading authorities on Section 43B →

Recent GST High Court judgments

Search GST case law →