Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 456 - AT - Income TaxReopening of assessment - addition made by allowing CENVAT Credit - Held that:- We find ourselves in complete agreement with the conclusion arrived at by the CIT(A) on merits. The CIT(A) has observed as noted supra that there is nothing on record to show that Central Excise Department has finally charged the assessee of misutilisation of CENVAT credit as alleged in the SCN. We find that the AO has not supported the allegation made in the SCN by any independent material in corroboration thereto. We also find force in the argument of the assessee that manufacture and sale of the finished goods would naturally involve corresponding purchase of raw-material. It was for the AO to establish that the imported/high seas purchase on which custom duty was paid has not been utilized for manufacture/sale of finished goods. The AO has failed on this count too. The allegation of misutilisation of CENVAT credit is thus bereft of any credible credence. Thus, in the totality of the facts and circumstances of the case, the action of the AO in making additions towards misutilisation of CENVAT credit is devoid of merit. The CIT(A) in our view has rightly reversed the action of AO. Accordingly, we are not inclined to interfere with the order of the CIT(A). - Decided against revenue.
|