Liability to pay additional duty allowable in the year in which such liability arises

Brief of the Case In the present case the Hon’ble High Court while deciding the issue of additional excise duty borne by the assessee is allowable deduction u/s 37(1) held that manufacturing activity that occurred earlier, the liability to pay such additional duty did not exist in the previous years and as a result, could not have been claimed by the assessee as expenditure in the concerned previous years. Therefore, the deduction u/s 37(1) is available in the current assessment year as the duty was paid in the relevant year. Facts of the case The assessee from time to time had entered into ...