2008 (5) TMI 238

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e Tax Appellate Tribunal, Ahmedabad Bench-A, has referred the following question for the opinion of this Court under section 256(1) of the Income Tax Act, 1961 (the Act) at the instance of the Revenue. "Whether, on the facts and circumstances of the case, the Tribunal was right in upholding the order of the Commissioner of Income Tax (Appeals) deleting the addition of Rs. 3,40,644/- made on accou .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ing Counsel for the applicant-Revenue and learned advocate for the respondent-assessee. 5. The controversy is no longer res integra. In the case of Commissioner of Income-Tax vs. Indo Nippon Chemicals Co. Ltd., reported in (2003) 261 ITR 275 (SC), the Apex Court has observed as under (page 277): "We are unable to accept the view of the Assessing Officer that merely because Modvat credit is an ir .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... erroneous in our view, he assumed that the income, to the extent of the Modvat credit on the unconsumed raw material, was generated, which was not reflected in the accounts and attempted to bring it to charge under the Act." 6. In light of the judgment of the Apex Court, the question is answered in the affirmative, that is, in favour of the assessee and against the revenue. Reference stands disp .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X