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2014 (9) TMI 1160 - AT - Income TaxWrite-off of the outstanding unutilized CENVAT Credit available disallowed - allowable business expenditure - Held that:- As relying on M/s. Mohan Spinning Mills vs. ACIT [2013 (11) TMI 113 - ITAT CHANDIGARH] and Girdhar Fibres P. Ltd., vs. ACIT [2012 (11) TMI 161 - ITAT, AHMEDABAD] expenditure was incurred but that expenditure could not be adjusted against the CENVAT Rules because on the finished goods, i.e. texturised yarn only the basic duty is leviable. We, therefore, hold that the amount which is now written off being part of the business expenditure, hence allowable under the provisions of the Act. - AO and ld.CIT(A) was not right in disallowing the claim. AO is directed to allow the amount as claimed, subject to assessee furnishing the details of credit year wise and other excise registers/forms to establish that Cenvat credit was available to it, before writing off the same. Accordingly, grounds raised by the assessee are allowed.
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