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2016 (3) TMI 1196 - BOMBAY HIGH COURTInclusion of Modvat in opening stock in the light of Section 145A - Held that:- We find that the impugned order of the Tribunal after holding that Section 145A of the Act, which was brought into effect on 1st April, 1999 holds it would have application while determining the income chargeable to tax for the Assessment Year 1999-2000. In the above view, the impugned order of the Tribunal set aside the order of the Commissioner of Income Tax (Appeals) at the instance of the Revenue and restored the issue to the Assessing Officer for de novo adjudication in accordance with the provisions of Section 145A of the Act. The grievance of the Revenue that for earlier Assessment Years i.e. Assessment Years 1997-98 and 1998-99, the Tribunal had deleted Modvat from the valuation of closing stock. Therefore, it is obliged on the principle of consistency to have not directed the inclusion of Modvat in the valuation of opening stock. This submission completely overlooks the change in law with effect from 1st April, 1999 due to introduction of Section 145A in the Act. In the above view, no occasion to invoke the principle of consistency can arise. Thus, there is no merit in the above submission.
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