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2017 (11) TMI 1557 - HC - Income TaxApplicability of section 145A to the value of closing stock - Tribunal had held that the AO was not justified in adding Excise Duty only in closing stock of raw material and incidental goods and has accordingly directed the AO to compute total income by adding Cess, duty or tax paid not only in closing stock but also in purchases, opening stock and sales - Held that:- It is crystal clear that no such question of law arises out of the order of Income Tax Appellate Tribunal because Income Tax Appellate Tribunal has not deleted any addition made by AO but has directed the AO to recompute the assessee’s income after adjusting the values of opening stock, purchases, sales as well as closing stock and has directed the AO to verify the working submitted by assessee before Income Tax Appellate Tribunal. Applicability of section 145A to the value of closing stock on the ground of its overriding effect on the provisions of section 145. In this regard it is difficult to understand as to how the revenue can be said to be aggrieved by Income Tax Appellate Tribunal’s order, because the Income Tax Appellate Tribunal in expressed terms has already held that the provisions of section 145A has overriding effect on the provisions of section 145 but has further held that the said provisions are applicable not only on closing stock but on inventory i.e opening and closing stock both and even on purchases and sales. Thus, since the Income Tax Appellate Tribunal has already upheld applicability of section 145A, the substantial questions sought to be posed by revenue becomes purely academic.
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