Excise duty refund eligible for deduction u/s 80-IB

PrintPDF M/s J.K. Aluminium Co vs. ITO (ITAT Delhi)

As is clear, the Notification dated 14.11.2002 exempts the amount of excise duty paid by the assessee as such excise duty per se is not leviable. In order to ensure proper control over the transactions, the Notification only requires the manufacturers to first deposit the excise duty and then claim the refund of the same next month. Thus the refund is assessee’ s own money itself in a way security deposit which is being refunded on submission of the evidence depositing the same. Therefore, in our view this is not an income at all. Therefore, the A.O, in our view, was not justified in making as separate addition of income and thereby denying the relief eligible u/s 80.IB of the Act on that amount.