TMI Blog2014 (2) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of Assessee. Addition on account of CENVAT credit in valuation of stock – Held that:- The component of CENVAT has to be added to the closing stock and adjustment has to be made accordingly in the opening stock - The assessee submitted that the adjustment has to be made on the purchases also – the contention of the assessee is accepted for the purpose of valuation of purchase and sale of goods and inventories adjustment on account of tax, duty, cess or fee, actually paid or incurred by the assessee has to be made in view of the provisions of section 145A of the Act – thus, the Assessing Officer is directed to make necessary adjustment and give CENVAT credit on account of purchases also – Decided partly in favour of Assessee. - I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciate companies. The details of interest free funds were also submitted which has been incorporated by the Assessing Officer at Page 9 of the assessment order. Lastly, it was also submitted that the provisions of rule 8D will not be applicable in the assessment year 2007 08 in view of the decision of the Hon'ble Jurisdictional High Court in Godrej Boyce Mfg. Co. Ltd. v/s DCIT, (2010), 328 ITR 081 (Bom.). The Assessing Officer, however, made the disallowance of Rs. 51,23,052 as per the provisions of rule 8D on the basis of the working given in Para 5 and 6 of the assessment order. Thereafter, he noted that the assessee, vide letter dated 1st April 2009, has estimated the disallowance under section 14A at Rs. 75,17,781 in consequence of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt in Godrej Boyce Mfg. Co. Ltd. (supra) and to work out some reasonable basis after examining the accounts and giving proper opportunity to the assessee to explain its case. If the assessee has sufficient interest free funds for making the investment in shares of subsidiary company, then no disallowance of interest expenditure should be made. The Assessing Officer is also directed not to apply the provisions of Rule-8D, for the impugned assessment year. Consequently, this ground is allowed for statistical purposes. 8. Ground no.2 relates to addition on account of CENVAT credit in valuation of stock. 9. Before us, the learned Counsel for the assessee took a plea that if the addition on account of CENVAT credit is made to the closing s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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