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2016 (2) TMI 159 - AT - Income TaxAdjustment of excise duty on opening stock U/s 145A - Held that:- The assessee furnished all the details before the lower authorities at the time of appellate proceedings and at the time of first appeal made before the ITAT thereafter in set aside proceeding, these details were given to the Assessing Officer. As decided in CIT Vs. Mahavir Alluminum Ltd [2007 (11) TMI 41 - HIGH COURT OF DELHI ]there is no question of any double benefit being given to the assessee. Valuation of inventory, this will affect both the opening as well as the closing stock. It is also to be noted that if any adjustment is required to be made by a statute, (as for example section 145A of the Act), effect to the same should be given irrespective of any consequences on the computation of income for tax purposes. Section 145A of the Act begins with a non obstante clause, and therefore, to give effect to section 145A of the Act, if there is a change in the closing stock as on March 31, 1999, there must necessarily be a corresponding adjustment made in the opening stock as on April 1, 1998.Therefore, we allow the assessee’s claim of adjustment of excise duty U/s 145A on opening stock as on 01/4/1998 at ₹ 16,20,151/-.- Decided in favour of assessee Deemed dividend U/s 2(22)(e) - Held that:- Assessing Officer had not given any finding on transaction but summarily rejected the submission made by the assessee. The ld CIT(A) also considered the title of the account for deciding the issue of deemed dividend U/s 2(22)(e) of the Act. The copy of account filed itself shows that the assessee has number of transactions related to goods purchased and sale, job work charges, paid and received rent and interest. In opening, there was a debit balance in the books of assessee and on closing it was a credit balance. The balance after every transaction changed the position some time it becomes credit and some time debit. Therefore, we hold that transactions made by M/s Chrome International Co. ltd. with assessee are business transactions during the ordinary course of business, which cannot be treated as deemed dividend U/s 2(22)(e) of the Act. - Decided in favour of assessee
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