TMI Blog2010 (4) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... ted against the order dated 4/9/2008 of the CIT[A] for the assessment year 2004-05. The dispute raised in the cross appeals is in relation to addition on account of unutilized modvat credit. 3. Briefly stated the facts of the case are that the AO during the assessment proceedings noted that the assessee was having unutilized modvat credit balance of ₹ 11,12,044/- of which a sum of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, added the sum of ₹ 11,01,899/-. The argument of the assessee that it was following exclusive method and that no addition was required to be made, was not accepted. In appeal, CIT[A] confirmed the decision of the AO subject to modification that adjustment on account of unutilized modvat was also required to be made in the opening stock. Aggrieved by the decision of the CIT[A] , both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition on account of unutilized modvat credit relating to the raw material in the closing stock. We find that similar dispute had been raised in the assessee s own case for the A.Y 1999-2000 in I.T.A.No.505/M/04 in which the Tribunal held that adjustment on account of unutilized modvat credit was required to be made both in the opening stock and in closing stock in view of judgment of Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the file of the AO for passing a fresh order after necessary examination in the light of observations made above and with a direction to ensure that there was no double deduction firstly, at the time of giving effect to sec.145A and secondly at the time of final exercise of option for adjustment of modvat account. The situation this year is identical and no distinguishing features were brought ..... X X X X Extracts X X X X X X X X Extracts X X X X
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