https://www.taxtmi.com/caselaws?id=14944 Modvat credit on raw materials was treated as reducing purchase cost and, on the same balancing principle, had to be reflected in closing stock valuation. The Assessing Officer's method was rejected because it credited the full purchase cost without carrying the Modvat element into inventory, which would distort profit computation. On that basis, the assessee's net method was held not to understate profits, the proviso to section 145(1) could not be invoked, and section 145A was held inapplicable to the assessment year in question. en-us Mon, 14 Aug 2000 00:00:00 +0530 Mon, 27 Jul 2009 12:23:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14944 Modvat credit on raw materials was treated as reducing purchase cost and, on the same balancing principle, had to be reflected in closing stock valuation. The Assessing Officer's method was rejected because it credited the full purchase cost without carrying the Modvat element into inventory, which would distort profit computation. On that basis, the assessee's net method was held not to understate profits, the proviso to section 145(1) could not be invoked, and section 145A was held inapplicable to the assessment year in question. Case-Laws Income Tax Mon, 14 Aug 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14944