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2012 (10) TMI 281 - AT - Income TaxValidity of reassessment proceedings u/s 263 - reassessed on ground that assessee had not included the unutilized CENVAT credit while valuing the closing stock of raw materials and WIP - refund of excise duty not included while computing the total income - wrong claim of “additional depreciation on windmills - AY 2007-08 - Held that:- A bare reading of S263 makes it clear that to justify exercise of jurisdiction by CIT, the order of the A.O. is to be erroneous in so far as it is prejudicial to the interest of the Revenue. In present case, assessee submitted the method of accounting employed consistently followed by it for accounting of Excise duty and CENVAT, and exclusive method of accounting for sales, purchase and closing stock and by following either of the method there is no impact on P/L A/c. The assessee also submitted that the depreciation has been allowed to the assessee before examining the relevant details. The A.O. in the instant case had examined the issue of stock valuation and depreciation on windmills and we are satisfied that the A.O. had made necessary inquiries and the assessee had provided an explanation in that regard. Thus, it can be said the A.O. on being satisfied did not make any addition and dis-allowance. Therefore, we are of the view that the stand taken by the A.O. was not an unsustainable in law so as to render the order as prejudicial to the interest of Revenue. Therefore the order of the A.O. cannot be considered either to be erroneous or prejudicial to the interest of the Revenue. Order of CIT quashed - Decided in favor of assessee
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