Maruti Suzuki India Ltd. (Earlier Known ... vs Commissioner Of Income Tax Delhi

The Supreme Court upheld the High Court's decision affirming the Income Tax Appellate Tribunal's disallowance of deductions claimed under Section 43B of the Income Tax Act for unutilized MODVAT credit and Sales Tax Recoverable Account. The Court ruled that the advance payment of Excise Duty representing unutilized MODVAT credit does not qualify as an allowable deduction under Section 43B, as the liability for such payment was not incurred. Consequently, the appeals were dismissed, maintaining the Revenue's position.