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2017 (9) TMI 964 - AT - Income TaxRevision u/s 263 - Omission at the end of the AO not to treat this unutilized CENVAT credit as a part of closing stock rendered his order erroneous which is prejudicial to the interest of the Revenue - Held that:- According to the assessee, it has not claimed as deduction as a part of purchases. It is separately debited to CENVAT credit receivable account. If that was the situation, which has been verified in the Asstt.Year 2010-11 by the ld.CIT(A) vide order dated 1.12.2014 what was the occasion for the ld.Commissioner to relegate this issue to the AO without verifying the details on merit. The AO has passed the assessment order in pursuance of 263 order which was challenged in appeal before the CIT(A) and the ld.CIT(A) has followed order of the predecessor in the Asstt.Year 2010-11 dated 1.12.2014. Had the ld.Commissioner applied his mind and looked into the issue on merit, atleast this unnecessary exercise should have been avoided. As far as second issue is concerned, a conclusive finding have been recorded by the ld.CIT(A) in the Asstt.Year 2010-11 before the order passed under section 263 that payment of alleged gratuity was towards a approved fund. This order was not challenged. Appellant has made payment to an approved gratuity fund and therefore payment made is allowable as deduction u/s.36(1)(v) of the Act Thus we are of the view that no case is made out for taking action under section 263 of the Income Tax Act, 1961 - Decided in favour of assessee.
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