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2017 (7) TMI 616 - HC - Income TaxAddition on account of unutilized Cenvat credit to closing stock - Held that:- The Apex Court in the case of Indo Nippon Chemicals Co. Ltd. (2003 (1) TMI 8 - SUPREME Court ) while affirming the order of High Court, has observed that the income was not generated to the extent of Modvat credit or unconsumed raw material. Merely because the Modvat credit was irreversible credit offered to manufacturers upon purchase of duty paid rawmaterials, that would not amount to income which was liable to be taxed under the Act. It is also held that whichever method of accounting is adopted, the net result would be the same. Considering the above, the amount of the unutilized Cenvat credit could not have been directly added to the closing stock. The Tribunal has not committed any error.
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