Case Law Details
Aroma Enterprises (India) Ltd. Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that as assessee was not legally obliged to pay customs duty amount, additional claim towards payment of such customs duty cannot be allowed under provisions of section 43B(a) of the Income Tax Act.
Facts- The assessee made a fresh claim of customs duty expenses amounting to Rs. 1,53,45,844/- before AO during the course of assessment proceedings. The contention of the assessee was that the assessee is eligible to claim the aforesaid expenses towards customs duty expenses, which had been paid by the assessee under protest and had not been charged to the Profit & Loss Account. However, AO did not allow the claim of the assessee on the ground that deduction on account of unclaimed customs duty paid by the assessee cannot be allowed since AO has no power under the Income Tax Act to allow expenses made by the assessee during the year, but not claimed by the assessee in the return of income.
CIT(A) rejected the allowability of the claim u/s. 43B(a) of the Act. Being aggrieved, the present appeal is filed.
Conclusion- Held that in assessee’s case, the assessee was not required to pay customs duty under reference. The Ld. CIT(A) observe that in view of the aforesaid order passed by the concerned Customs Authority, since the assessee was not required to pay customs duty amounts to Rs. 1,53,45,844/- in all likelihood, the assessee would have already put up a claim for refund of the aforesaid amount which was paid under protest. Further, since the assessee was not legally obliged to pay customs duty amounts to Rs. 1,53,45,844/-, therefore, this additional claim towards payment of customs duty cannot be allowed under the provision of Section 43B(a) of the Act.
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