TMI Blog2014 (6) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and after taking into consideration the working, the CIT(A) deleted the addition made by the AO by invoking the provisions of section 145A of the Act - revenue contended that working furnished by the assessee before the CIT(A) for the first time in support of its claim by the assessee has been relied upon by the CIT(A) to give relief to the assessee without giving an opportunity to AO to verify the same - there is also nothing in the order of CIT(A) to show that the working has been verified by him – thus, the matter is required to be remitted back to the AO for verification of the working furnishing by the assessee before the CIT(A) to show that the adjustments required to be made u/s 145A of the Act are revenue neutral having n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the value of closing stock of the assessee was enhanced by the AO to that extent and an addition of Rs.23,11,296/- was made to the total income of the assessee. The AO also found that the assessee has claimed expenditure of Rs.76,01,770/- on account of excise duty under the head duties and taxes . According to the AO, since exclusive method of accounting was followed by the assessee whereby purchases and sales were recorded on net of excise duty, the expenditure claimed by the assessee on account of excise duty paid amounted to double deduction. He, therefore, disallowed the expenditure claimed by the assessee on excise duty and added the sum of Rs.76,01,770/- to the total income of the assessee. 3. Against the order passed by the AO u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocation and condition as on the date of valuation. We are therefore of the view that when the assessee is following exclusive method of accounting for the valuation of purchase and sale of goods as well as inventory, the further adjustment is required to be made to include the amount of excise duty in such valuation as per the provisions of section 145A of the Act. At the time of hearing before us, the ld. Representatives of both the sides have not disputed this position. The ld. counsel for the assessee has submitted that detailed working was filed by the assessee before the ld. CIT(A) to show that the adjustments required to be made as per the provisions of section 145A of the Act are revenue neutral having no effect on the final profit o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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