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2015 (3) TMI 1 - AT - Income TaxExcise and VAT for valuation of stock - inclusion v/s exclusion - Held that:- There is submission of the assessee before the authorities below that while the entire amount of excise duty realized on sales was included in the sale amount but out of entire amount of excise duty paid on purchases, only that portion of such excise duty paid which was utilized by way of MOD VAT, had been included in the value of purchases and the balance amount of Modvat credit which could not be utilized in the present year was shown in the balance sheet as an amount receivable and this portion was not included in the value of purchases. Ld. D.R. could not controvert these submissions of the assessee made by the assessee before the authorities below. Once it is accepted that these submissions of the assessee are correct, it means that excise duty paid but not included in the purchases was shown in the balance sheet as excise duty receivable and therefore, there cannot be a reason to make any addition in the income of the assessee because even if we include such excise duty receivable in the value of closing stock, the same is also required to be included in the value of purchases and it will have no impacts on the profits of the assessee. Therefore, we do not find any reason to interfere in the order of Ld. CIT(A). Thus no addition on account of MODVAT and VAT as made by the A.O needs to be made in the present case. See Snehal Pharma Chem [2015 (2) TMI 151 - ITAT AHMEDABAD] and The DCIT, Circle 1, Versus M/s Bloom Dekor Ltd. [2013 (8) TMI 180 - ITAT AHMEDABAD] - Decided in favour of assessee.
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