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2014 (7) TMI 342 - AT - Income TaxReopening of assessment u/s 147/148 of the Act - Valuation of closing stock u/s 145A of the Act - Unutilized CENVAT credit – Held that:- No evidence of reversal before Excise Authority has been filed even during the Appellate proceedings - there has been a failure on the part of the appellant to disclose fully and truly all the material facts even in respect of second ground of reopening - certain discrepancies were noticed in the excise accounting of the appellant, as a result of which correct amount of addition u/s 145A needed to be enhanced to ₹ 40, 95, 280 - notice of enhancement U/s 251 (2) of the I T Act was issued on 08.08. 2012 - The appellant has claimed to reversal of the credit taken during the year itself, while the credit continues in the Excise Records - Since the appellant follows "Exclusive Method 'of accounting, it may still take credit for the same in future. Assessee had not included the value of excise while valuation of stock - provisions of s. 145A are mandatory and it mandates that the valuation of purchase and sale of goods and inventory shall be in accordance with the method of accounting regularly followed by the assessee and it should include the amount of any tax, duty, cess or fee actually paid or incurred by the assessee to bring the goods to the place of its location and condition on the date of valuation - since the Assessee has not followed the mandatory requirement of provisions of s. 145A - the AO was fully justified in resorting to the reopening of assessment - CIT(A) by a well-reasoned and detailed order has rightly upheld the order of Assessing Officer and enhanced the income of the Assessee by the amount of ₹ 40,95,280/- as per the provisions of Section 145A of the Act – Decided against Assessee.
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