High Court Of Delhi
Jallo Subsidiary Industries Co. (India) (P) Ltd. vs. CIT
Section 37(1)
Asst. Year 1973-74
Arijit Pasayat, C.J. & D.K. Jain, J.
IT Ref. No. 9 of 1983
23rd July, 2001
Counsel Appeared : None, for the Petitioner : Ajay Jha, for the Respondent
JUDGMENT
ARIJIT PASAYAT, C.J. :
Heard.
2. At the instance of assessee, following question has been referred for opinion of this Court by the Income-tax Appellate Tribunal, Delhi Bench ‘D’ (in short ‘the Tribunal’), under s. 256(1) of the IT Act, 1961 (in short ‘the Act’) :
“Whether, on the facts and in the circumstances of the case, the liability of excise duty at Rs. 93,879 arising out of the order of the Collector, Central Excise, made during the accounting period relevant to the assessment year under appeal arises and is allowable under s. 28/37 of the IT Act, 1961 ?”
3. As the question itself indicates, the main issue related to accrual of liability and the fact that the Tribunal found that the accrual of liability was when the goods were removed from the factory and not during the assessment year involved, i.e., 1973-74. The issue is no longer res integra is view of the decision of the apex Court in Kedarnath Jute Mfg. Co. Ltd. vs. CIT (1971) 82 ITR 363 (SC) : TC 16R.668. That being the position, the inevitable answer to the question is that the Tribunal’s view was correct and the liability did not arise out of the order of the Collector but on the date of removal of the goods from the factory. The question is answered in favour of Revenue and against the assessee. The reference stands disposed of.
[Citation : 256 ITR 452]
