- (1.) THE Tribunal, Allahabad has referred the following question of law under s. 256(1) of the IT Act, 1961, hereinafter referred to as 'the Act' for opinion to this Court : "Whether, in view of the facts and circumstances of the case, the Hon'ble Tribunal was legally correct in directing the AO to entertain the claim of the assessee regarding deduction of Rs. 1,43,03,853 representing the aggregate of customs and excise duty included in the value of closing stock -
(2.) THE present reference relates to the asst. yr. 1985 -86.
(3.) BRIEFLY stated the facts giving rise to the present reference are as follows : During the year under consideration, the assessee claimed the reduction of Rs. 1,43,03,833, representing the aggregate of customs and excise duty included in the value of closing stock, under s. 43B of the Act. The assessee had also offered to add a sum of Rs. 1,47,05,868 which was claimed by it in the preceding year. The AO in the light of the order of the Tribunal, Delhi Bench 'C in ITA No. 334/Del/1987 rejected the claim of the assessee. The CIT(A) also, upheld the finding of the AO. The Tribunal following the decision of the Tribunal, Special Bench in the case of Indian Communication Network (P) Ltd. vs. IAC (1994) 48 TTJ (Del)(SB) 604 : (1994) 49 ITD 56 (Del)(SB) directed the AO to entertain the claim of the assessee in the light of the above decision.;