Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 561 - AT - Income TaxValuation of stock - Deletion of Excise duty/modvat credit – Invocation of section 145A of the Act – Held 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 – assessee has submitted that detailed working was filed by the assessee before the 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 of the 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 no effect on its final profit – Decided in favour of Assessee.
|