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Pr. Commissioner Of Income Tax vs Maruti Suzuki India Limited on 25 July, 2019

32. As can be seen from the provisions of Section 43-B, in particular explanation-2 added thiseto, the requirement of applicability of the provision is that an assessee must have actually paid the amount as well as incurred liability in the previous year for the payment even though such sum might not have been payable within that year under the relevant law. It is, thus, not correct that it is only on removal of goods that amount credited to the PLA could be claimed as deductible under Section 43-B of the Income Tax Act. This question was first considered by Delhi High Court in CIT vs. Maruti Suzuki Ltd. 2012 SCC Online Del 6240. Para 14 and 15 of the judgment are relevant on the issue in hand and are thus reproduced hereunder:-
Supreme Court of India Cites 46 - Cited by 93 - D Y Chandrachud - Full Document
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