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2013 (1) TMI 968

I.T.A. No.1936/Ahd/2010 - Dated:- 11-1-2013 - SHRI MUKUL Kr.SHRAWAT, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER For the Appellant : Shri T.Shankar, Sr.D.R. For the Respondent : Shri Mehul R.Shah, AR ORDER PER SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER : This is an appeal filed by the Revenue arising from the order of Ld.CIT(A)-IV, Surat dated 22.02.2010 passed for A.Y. 2006-07 and the ground raised is as follows:- 1. On the facts and in the circumstances of the case and in Law, the Ld.C .....

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n. When the matter was carried before the first appellate authority, the Learned CIT(Appeals) has allowed the claim of the assessee by observing as under:- 1. have considered the findings of the AO and the submissions made by the appellant. From the facts of the case, it is evident that the appellant has opted for the exemption route without availing Cenvat Credit and therefore, unutilized Cenvat Credit of ₹ 60,24,121/- as availed on the inputs, was written off in the regular books of acco .....

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ons as laid down in section 37 of the IT Act. The argument of the AO that the impugned deduction is allowable against the future expenses has no force since the assessee has already surrendered its license under the Excise Act and opted for the exemption route and hence, there is no question of setting off the said expenditure in future. Further, the same view has also been taken in the cases of ACIT Vs. Naffar Chandra Jute Mills Ltd. (2004) 90 TTJ (Cal) 934, Honda Seil Power Products Ltd. Vs. D .....

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Bench Chandigarh in the case of M/s.Mohan Spinning Mills (supra) has opined as under:- 7. We have heard the rival contentions and perused the record. The issue arising in the present appeal is in respect of the deduction claimed on account of CENVAT amounting to ₹ 35,94,577. The assessee was engaged in the business of manufacturing and trading of yarn and fibre. The yarn manufactured by the assessee was an excisable item. The assessee was paying excise duty on the raw material purchased i .....

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e assessee was paying higher rate of excise duty on the raw material purchased by it as against the rate of excise duty applicable on the manufactured items, consequently credit of excise duty was available with the assessee. The said excise duty paid from year to year was not claimed as an expenditure but was carried forward from year to year to be adjusted against the excise duty payable by the assessee on its manufactured items. However, during the year under consideration the assessee closed .....

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(supra) has also opined as under:- 9. We heard both the sides. Before us, Form E.R.1, i.e. Return of Excisable goods and availment of CENVAT credit has been placed. The explanation of the assessee was that the impugned two amounts were part of the duty which was paid by the assessee at the time of purchase of raw-material, however, the assessee had maintained exclusive system of accounting, therefore the duty paid was not debited as a part of the purchases but a separate account was maintained .....

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