COMMISSIONER OF INCOME TAX II vs M/S MODIPON LTD.

The Supreme Court addressed the issue of whether an assessee is entitled to claim a deduction under Section 43B of the Income Tax Act, 1961 for excise duty paid in advance in the Personal Ledger Account (PLA). The Court held that the deduction under Section 43B is only applicable to actual payments made, not to amounts merely deposited in the PLA, which do not constitute actual payment of duty. Consequently, the Court set aside the High Court's orders that had allowed the deduction, ruling in favor of the Revenue.