#stock valuation

The Supreme Court ruled that unpaid excise duty on sugar stock lying in a bonded warehouse cannot be added to taxable income under Sections 43B and 145A where the assessee follows the exclusive accounting method, has not claimed any deduction for such duty, and the goods remain unremoved. The decision clarifies that no tax liability crystallises under excise law until goods are actually cleared from the bonded warehouse, protecting manufacturers from phantom income additions on stock they cannot legally sell.