The present appeal has been admitted vide order dated 10.6.2010 on the following substantial questions of law:

“1. Whether the Tribunal was correct in holding that the Commissioner was not justified in passing the order U/s 263 of the Act on the ground that the order of assessment was not erroneous and prejudicial to the interest of the revenue as Assessing Officer has followed one of the permissible views in allowing the deduction of excise duty but without considering the fact that assessee has claimed such deduction twice?

2. Whether the Tribunal was correct in holding that the excise duty included in the valuation of closing stock of unsold finished goods as per the provisions of section 145A of the Act shall be reduced from the income computed under the head ‘profits and gains or business or profession’ without noticing the fact that such excise duty was debited to the profit and loss account and claimed as an expenditure?

2. The relevant facts are that, the respondent filed the return of income as on 1.11.2004 declaring the total income of Rs.48,60,54,400/. The scrutiny was made under Section 143(2) of the Income Tax Act (hereinafter referred to as `Act’). The Assessing