| Case ID |
15b376c0-67e4-4169-a591-c06697006a49 |
| Body |
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| Case Number |
IT Appeal No. 233 of 2013 |
| Decision Date |
Sep 01, 2014 |
| Hearing Date |
Oct 09, 2013 |
| Decision |
The Delhi High Court ruled in favor of the respondent-assessee, Lakshmi Sugar Mills Co. Ltd., stating that the excise duty shown as payable but not paid could be allowed as an expenditure under Section 43B read with Section 145A of the Income Tax Act, 1961. The court emphasized that the interpretation of tax obligations must consider actual payments and the timing of liabilities. The court remanded the case to the Income Tax Appellate Tribunal for a fresh decision, aligning with the observations made regarding the actual circumstances and factual position of the case. The court affirmed the importance of ascertaining the true nature of tax liabilities in accordance with established legal principles. |
| Summary |
In the case of IT Appeal No. 233 of 2013 before the Delhi High Court, the substantial question of law revolved around the allowance of excise duty shown as payable but not paid under the Income Tax Act, 1961. The court examined the provisions of Sections 43B and 145A, which govern the treatment of tax liabilities in income computation. The ruling highlighted the necessity of evaluating the timing and nature of tax obligations, especially in the context of excise duties related to unsold goods. The decision reinforces legal principles regarding tax accounting and the treatment of liabilities, establishing a precedent for similar cases involving tax deductions and assessments. Key terms include 'Income Tax Act', 'excise duty', 'tax liabilities', 'Delhi High Court', and 'legal principles'. This case serves as a significant reference for tax law practitioners and entities dealing with complex taxation issues. |
| Court |
Delhi High Court
|
| Entities Involved |
Lakshmi Sugar Mills Co. Ltd.
|
| Judges |
Sanjiv Khanna,
V. Kameswar Rao
|
| Lawyers |
Kamal Sawhney, Sr. Standing Counsel,
Sanjay Kumar, Advocate,
Rahul Chaudhary, Advocate
|
| Petitioners |
Commissioner of Income Tax-II
|
| Respondents |
Lakshmi Sugar Mills Co. Ltd.
|
| Citations |
2014 SLD 1896,
(2014) 369 ITR 666
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
43B,
145A
|