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2017 (12) TMI 296 - AT - Income TaxAddition in respect of under valuation of closing stock - Held that:- While it is the case of the Revenue that CENVAT credit of ₹ 59,30,117/- represents the part of the closing stock of the assessee in terms of section 145A of the Act, it is the case of the assessee, on the other hand, that the action of assessee is revenue neutral and there is no infringement of s.145A in essence. In this regard, we notice that the issue is no longer res integra and adjudicated in favour of the assessee in its own case in the preceding AY 2008-09 on similar facts. Claims of depreciation allowances on plant & machinery which was stated to be not claimed in the return of income inadvertently - Held that:- The assessee having not claimed the depreciation eligible to it under law, will not operate as estoppel when relevant facts are available on record. In the circumstances, we do not subscribe to the dismissal of the claim of depreciation allowances stated to eligible to the assessee by the CIT(A). The aforesaid view finds support from plethora of decisions including judgement of Hon’ble Bombay High Court in the case of CIT vs. Pruthvi Brokers & Shareholders Pvt.Ltd. [2012 (7) TMI 158 - BOMBAY HIGH COURT]. We are not inclined at this stage to go into the merits of the claim of depreciation allowance. We set aside and restore the issue to the file of the AO for its de novo examination with a direction to allow the depreciation allowances in accordance with law regardless of its not having been claimed in the return of income. The AO however shall be entitled to make suitable adjustments/corrections in the consequential claim of depreciation allowance in the subsequent years after verification.
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