Berger Paints India Ltd vs Commissioner Of Income Tax, Calcutta

The Supreme Court addressed the interpretation of Section 43B of the Income Tax Act, 1961, concerning the deduction of customs and excise duties. The Court held that the assessee was entitled to deduct the entire sum of Rs. 5,85,87,181 as it was paid during the relevant previous year, despite the Commissioner of Income Tax's disallowance based on the treatment of closing stock. The Court affirmed the principle that actual payment of duties should be recognized for deduction, thereby overturning the Tribunal's decision which distinguished a prior Gujarat High Court ruling.