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2013 (2) TMI 262 - AT - Income TaxAddition of purchase tax to closing stock not included therein - Held that:- As in assessee's own case for A.Y. 2004-05 ITAT added purchase tax to the cost of value of closing stock by holding that as per provisions of section 145A, the value of purchase tax has to be taken into account while valuing the closing stock. Also observed that in the light of the decision of CIT v. Mahalaxmi Glass Works (P.) Ltd. [2009 (4) TMI 182 - BOMBAY HIGH COURT] the opening stock valuation should also be correspondingly adjusted - thus set aside the issue to the file of the Assessing Officer to re-compute in line with the view taken therein. Addition made to closing stock u/s. 145A on account of Modvat credit - Held that:- The assessee has been consistently followed exclusive method and by virtue of insertion of section 145A the assessee has to follow inclusive method in which event, similar adjustment has to be made to the opening stock, purchases, sale and closing stock also. Even if there is no tax impact, section 145A has to be applied for valuation of opening stock, purchases, sale, and closing stock, as held by in the case of Cabot India Ltd.'s (2009 (10) TMI 656 - BOMBAY HIGH COURT) and Nicholas Piramal India Ltd. [2009 (8) TMI 224 - BOMBAY HIGH COURT]. The Assessing Officer is directed to recompute accordingly. Addition u/s. 50 r.w.s. 50C - assessee contested against invoking sec 50C as it is depreciable asset and hence valuation adopted by stamp valuation authority should not be taken into consideration - Held that:- With regard to applicability of provisions of section 50C, in the case of depreciable assets, the issue now stands squarely covered in the case of ITO v. United Marine Academy [2011 (4) TMI 15 - ITAT MUMBAI] wherein held that sections 50 & 50C operate in two different fields and if the value adopted by the stamp valuation authority is accepted by the purchaser/seller there cannot be any variation for limited purposes of computing the consideration received, under section 50C. In the light of the decision cited no infirmity in the order passed by CIT(A)- against assessee.
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