ii and iii relating to the above numbered disallowance in favour of the Revenue.
At the end of the Assessment year 19992000 an amount of Rs.69,93,00,428/ was left as unutilised MODVAT credit.
For deciding these two appeals it is sufficient to numberice the facts in CA No.11923 of 2018 for Assessment Year 19992000.
Similarly, the Company claimed deduction under Section 43B of an amount of Rs.
The Assessing Officer as well as the Commissioner of Income Tax Appeals has number accepted the claim of the appellant.
The Assessing Officer disallowed the claim of deduction of Rs.69,93,00,428/ as well as Rs.3,08,99,171/. Aggrieved by the assessment order, the assessee filed an appeal before the Commissioner of Income Tax.
The assessee had also been taking benefit of MODVAT credit on the raw material and inputs used in the manufacturing.
It acquires exiceable raw materials and inputs which are used in the manufacturing of the vehicles.
The Commissioner of Income Tax also sustained the disallowance of the above two items.
3,08,88,171/ in respect of Sales Tax Recoverable Account.
In the return it was claimed that the Company was eligible for deduction under Section 43B of the Income Tax Act as an allowable deduction.
The assessment year in question is assessment year 19992000.
The appellant hereinafter referred to as the assessee is engaged in the business of manufacturing automobiles, which are chargeable to Excise Duty under the Central Excise Act, 1994.
ITA No.31 of 2005 related to Assessment year Signature Not Verified 19992000 Digitally signed by ARJUN BISHT and ITA No.442 of 2005 related to Date 2020.02.07 155829 IST Reason Assessment year 20002001, in both the appeal similar questions were answered against the assessee.
The ITAT took the view that the advance payment of Excise Duty which represented unutilised MODVAT credit without incurring the liability of such payment is number an allowable deduction under Section 43B. The assessee filed an appeal under Section 260A of the Income Tax Act in the High Court.
The High Court by the impugned judgment has affirmed the views of Income Tax Appellate Tribunal on the questions which have been raised in this appeal.
The assessee, a Company, has been engaged in manufacturing and sale of various Maruti Cars and also trades in spares and companyponents of the vehicles.
ii and iii as framed by the High Court are to the following effect Whether the ITAT had companymitted an error of law in upholding the disallowance of the amount of Rs.69,93,00,428/ which represented MODVAT credit of Excise Duty that st remained unutilised by 31 March, 1999 i.e. the end of the relevant accounting year ?
The Assessing Officer passed assessment order dated 28.03.2002.
Aggrieved by the judgment of the High Court, these appeals have been filed.
As soon as the raw materials and inputs are received in the appellants factory, the assessee becomes entitled to avail of MODVAT credit in respect of Excise Duty paid on the raw materials and inputs and which is mentioned in the manufacturersuppliers invoice.
The High Court answered question Nos.
An appeal to ITAT met the same fate.
The two questions which were answered by the High Court in favour of the Revenue which were subject matter of this appeal are question Nos.
ASHOK BHUSHAN,J. By these appeals the assessee has challenged the judgment of the High Court of Delhi dated 07.12.2017 deciding the Income Tax Appeal No.31 of 2005.
