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2014 (3) TMI 403 - AT - Income TaxDisallowance of provision for outstanding expenses Held that:- The CIT was of the view that the assessee has restricted the disallowance on the ground that the assessee has made payment before finalization of books of account but for the amount of credit note has been issued or actual payment has been made after finalization of books of and the balance amount was written back on 31.3.2011 thus, the total amount liability has not been ascertained and quantified till the finalization of books of account the assessee did not dispute the fact that the above amount which has been disallowed by CIT(A) was ascertained and crystallized after finalization of books of account in the next financial year - thus, there is no reason to interfere in the findings of CIT(A) Decided against Assessee. Proper compliance of provision of section 145A of the Act Method of valuation - Whether the CIT(A) (A) erred in holding that the provisions of section 145A of the IT Act, 1961 have not been adopted by the appellant fully and thereby directing the AO to recompute the profits of the appellant in respect of unutilized modvat Held that:- CIT(A) has wrongly/due to typographical mistake has mentioned that as per section 145A, the assessee has followed compulsory exclusive method as against practice of following the same by inclusive method - CIT(A) after considering the submissions of assessee has directed the AO to recompute the profit after making adjustment with reference to the opening stock, closing stock, purchases and sales after considering the Modvat credit available to the assessee which is to be included while valuing the closing stock - The unutilized modvat is not to be included in the closing stock as the assessee has adopted exclusive method in respect of purchases of raw material and accordingly, the closing stock has been valued thus, the addition of unavailed modvat credit set aside Decided in favour of Assessee.
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