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TMI Blog2014 (2) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... 14A. 3. The assessee is engaged in the business of manufacturing of packing material i.e., multilayer collapsible tubes used for dentifrice cosmetics and other applications. On a perusal of the Balance Sheet, the Assessing Officer noted that the assessee company has made investments in equity shares of Rs. 5,50,90,38,831, which mostly consists of investment in foreign subsidiary at Rs. 4,73,88,78,483 and in Indian subsidiary at Rs. 77,01,60,348. Insofar as the investment in Indian subsidiary is concerned, the assessee was required to explain as to why the disallowance under section 14A should not be made. In response, the assessee submitted that the investments in the subsidiary were made as strategic investments and, hence, it was for bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasonable basis after considering the accounts of the assessee. 6. The learned Departmental Representative also admitted that provisions of rule 8D will not be applicable in this year and the matter can be restored back to the file of the Assessing Officer. 7. After hearing both the parties, we find that the Hon'ble Jurisdictional High Court in Godrej & Boyce Mfg. Co. Ltd. v/s DCIT, (2010), 328 ITR 081 (Bom.), has partly reversed the decision of Mumbai Special Bench of the Tribunal in Daga Capital Management Pvt. Ltd. [2008] 119 TTJ (Mum.) 289 (SB) and has held that rule 8D is not applicable prior to the assessment year 2008-09. Under these circumstances, we deem it appropriate to set aside the impugned order passed by the Commissioner ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tock of the previous year. He thus, strongly relied upon the findings of the learned Commissioner (Appeals). 11. After carefully considering the rival submissions, we find that there is no dispute with regard to the fact that component of CENVAT has to be added to the closing stock and adjustment has to be made accordingly in the opening stock. The learned Counsel for the assessee submitted that the adjustment has to be made on the purchases also. We agree with the contentions of the learned Counsel that for the purpose of valuation of purchase and sale of goods and inventories adjustment on account of tax, duty, cess or fee, actually paid or incurred by the assessee has to be made in view of the provisions of section 145A of the Act. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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