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2014 (9) TMI 323 - HC - Income TaxAddition of closing stock of finished goods - Whether the Tribunal was right in holding that no addition could be made in excess in the value of closing stock of finished goods made originally by the AO – Held that:- Revenue did not contend that MODVAT credit or duty in respect of the inputs has not been included in the value of the closing stock - the AO while making the addition did not go into these factors and issues – both the CIT(A) and Tribunal had rightly held that as per the assessee, the excise duty was payable at the time of removal of goods and not at the time of manufacture and the on the last date of the accounting year, the goods were lying in the bonded warehouse and the duty would be payable only at the time of unbonding - the duty had not been included and did not form part of the cost as it was not claimed in the profit and loss account - There is nothing on record to show that the Revenue in the appeal preferred before the Tribunal had raised the contention that the excise duty had, in fact, become payable and had been incurred in terms of the Excise Act or the applicable rules – decided against revenue.
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