Tribunal held that advance Custom duty paid adjusted against excise duty payable is allowable as deduction. Followed, CIT v. Samtel Colour Ltd. (2009) 184 Taxman 120 (Delhi) (HC). However in view of S.145A Tribunal directed the AO to recast Profit and loss account under ‘Inclusive method’ as per mandate of the said section. (AY. 2008-09)
Maruti Suzuki India Ltd. v. ACIT (2018) 191 TTJ 148 (Delhi)(Trib.)
S. 145A : Method of accounting–Valuation–Advance Custom duty paid adjusted against excise duty payable–Allowable as deduction- Directed the AO to recast profit and loss account under inclusive method. [S. 43B]