TMI Blog2014 (3) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowed 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 inclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee on the ground that the liability of the assessee had not crystallized during the relevant assessment year. In the first appeal, the ld. CIT(A) after considering the submissions of the assessee has restricted the disallowance of Rs.8,67,820/- on the ground that the assessee has made payment of Rs.33,36,152/- before finalization of books of account but for the amount of Rs.6,66,480/-, credit note has been issued or actual payment has been made after finalization of books of and for the balance amount of Rs.2,01,340/- it was written back on 31.3.2011. Therefore total amount of Rs.8,67,820/- (Rs.6,66,480 +Rs.2,01,340), the liability has not been ascertained and quantified till the finalization of books of account. 5. At the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prepared excluding element of tax, duty, cess or fee paid. It is relevant to state that the ld. 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. We observe that the ld. 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. 8. At the time of hearing, ld. AR referred page 32 of the paper book and submitted that the assessee has also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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