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2014 (8) TMI 1032 - AT - Income TaxAddition of MODVAT (CENVAT) credit on unconsumed raw material - Method of valuation of purchase and stock - Held that:- Following the decision in Commissioner of Income-Tax Versus Indo Nippon Chemicals Co. Ltd. [2003 (1) TMI 8 - SUPREME Court] the Modvat credit could not be added back to the income of the assessee. - that merely because the Modvat credit was an irreversible credit available to manufacturers upon purchase of duty-paid raw material, that would not amount to income which was liable to be taxed under the Act - income was not generated to the extent of the Modvat credit on unconsumed raw material - it was not permissible for the AO to adopt the “gross method” for valuation of raw materials at the time of purchase and the “net method” for valuation of stock on hand – Decided against revenue. Determination of profits from export business for the purposes of the deduction under section 80HHC - Held that:- As decided in Ajanta Phrama Ltd [2010 (9) TMI 8 - SUPREME COURT ] Section 80AB of the Income-tax Act, 1961, specifying that profits are those as determined for the purpose of the Act, will apply for determining profits from export business for the purposes of the deduction under section 80HHC Disallowance made u/s.14A - CIT(A) computed such disallowance as ˝% of the average investment and restrict the disallowance u/s.. 14A to ₹ 1,87,954/- - Held that:- We find that the major investment of the assessee is in its group companies. After considering this facts, the Ld. CIT(A) has restricted the disallowance to ₹ 1.87 lakhs. We do not find any reason to interfere with the findings of the Ld. CIT(A).
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