Excise duty not to be included in valuation of closing stock – Supreme Court

SUPREME COURT OF INDIA

Assistant Commissioner of Income-tax

Versus

Torrent Cables Ltd.

PETITION FOR SPECIAL LEAVE TO APPEAL (CIVIL) NO. 32817 OF 2010

CIVIL APPEAL NO. 6927 OF 2012

SEPTEMBER 25, 2012

ORDER

1. Heard learned counsel on both sides.

2. Leave granted.

3. This civil appeal filed by the Department concerns Assessment Year 1995-1996.

4. On going through the records, we find that the assessee Company has been following the net method for valuing the closing stock. It includes excise duty at the time of removal of goods. Following the order of this Court in the case of CIT v. Shri Ram Honda Power Equipment Ltd. [2012] 26 taxmann.com 331 (SC), this civil appeal filed by the Department is dismissed with no order as to costs.

NF