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2014 (10) TMI 400 - HC - Income TaxUndervaluation of stock - Whether the Tribunal was right in deleting the disallowance made by the AO on account of under valuation of stock even when the entry tax levied was includible in the closing stock of the assessee as per the provisions of Section 145A – following the decision in Commissioner of Income Tax, Faridabad Versus M/s Lakhani Rubber Udyog (P) Ltd. [2011 (2) TMI 546 - PUNJAB AND HARYANA HIGH COURT] - The nature of entry tax being as such it has nothing to do with the goods, it cannot become part of stock as it did not relate to it and hence, was not worked out by the appellant company or disclosed in the books of account - section 145A is not applicable and the addition on a/c of undervaluation of closing stock on the basis of effecting entry tax is liable to be set aside – Revenue is unable to distinguish the judgments or refer to any statutory provisions or raise any argument that would enable us to hold to the contrary - Decided against revenue.
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