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2014 (7) TMI 210 - AT - Income TaxValuation of purchases and sales of goods and inventory – Increase in value of closing stock – Balance under CENVAT account added - Held that:- The decision in COMMISSIONER OF INCOME-TAX Versus MAHALAXMI GLASS WORKS P. LTD. [2009 (4) TMI 182 - BOMBAY HIGH COURT] followed - to give effect to Section 145A, if there is any change at the closing stock at the end of the year due to inclusion of CENVAT credit available then there must necessarily be a corresponding adjustment made in the opening stock of that year and this would not amount to give double benefit to the assessee and would be necessary to compute the true and correct profit for the purpose of assessment. As per provisions of sec.145A adjustment is to be done in the opening and closing stock of the year under consideration so as to ascertain the true profits – thus, the AO is directed not to disturb the closing stock of past years and to make adjustment in the opening and closing stock of the year under consideration by the amount of value of Cenvat credit available to the assessee as at the beginning and at the end of the year – thus, the order of the CIT(A) is modified – Decided partly in favour of assessee.
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