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2020 (10) TMI 879 - AT - Income TaxAdjustment u/s 145A - Whether unutilized CENVAT credit was to be included in the value of closing stock in pursuance to the provision of section 145A? - assessee has shown less income by not including unutilized CENVAT credit in the value of closing stock shown as on 31/03/2006 AO added the same to the total income of the assessee - HELD THAT:- The provisions of section 145A of the Act mandate to follow the exclusive method of accounting which requires to record the transaction of purchase, sales of the stock after including taxes incurred in relation to purchase/sales of goods. But in the case on hand we find that the assessee has not included such taxes in the amount of purchases, sales and closing stock. We note that if such taxes are included in the opening stock, purchase, sales and closing stock then there will not be any difference in the total income declared by the assessee. It is because such exercise is tax neutral in the given facts and the circumstances. Assessee has placed a chart in the paper book which is placed depicting the profit under both the method of accounting i.e. inclusive and exclusive method of accounting as provided u/s 145A of the Act. On perusal of the chart there is no difference in the profit declared by the assessee except a minor difference of ₹ 5091/- only. See PUNEET INDUSTRIES PVT. LTD. [2016 (6) TMI 1167 - ITAT AHMEDABAD] assessee was following exclusive method of accounting and the CENVAT was not debited or credited to the Profit & Loss account and the aforesaid method has been consistently followed by the assessee in earlier and succeeding years - unavailed MOD VAT credit cannot be construed as income and there is no liability to pay tax on such unavailed MODVAT credit. - Decided against revenue.
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