TaxTMI 
TaxTMI 
2013 (3) TMI 332
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....owing substantial question of law in the memo of appeal. "Whether the Tribunal was right in directing to include the Excise Duty in valuation of closing stock in the case of assessee company, which is a small Scale Unit and is not liable to pay the Excise Duty on the first clearance upto Rs.100 lacs in the financial year?" The appeal relates Assessment Year 2001-02. The facts giving rise to the present appeal are that the assessee is engaged in the business of manufacture and sale of Industrial Knives. The assessee has filed income-tax return on 29.10.2001 showing business loss. The return was processed on 17.5.2002. Subsequently, it was taken for scrutiny and notices under Section 142(1)/143(2)(ii) of the Income-tax Act, 1961, hereinafte....
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....e to be made. The Tribunal vide judgment and order dated 19.11.2004 has held that the depreciation claimed in the head of consumption of stores has rightly been allowed. However, it has held that since in the relevant year excise duty was payable as such excise duty was liable to be included in the closing stock in the price of the finished goods. Accordingly, the order of Assessing Officer for addition of Rs.1,84,664/- was upheld. Counsel for the appellant submitted that the assesee is a small scale industry and under Central Excise Act, it was granted exemption upto the total sale of Rs.1.00 crore. Since in the next year the sale was within one crore, therefore, there was no liability of payment of excise duty, accordingly the excise dut....
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....327 ITR 369 and Commissioner of Income Tax Versus Dynavision Ltd., (2012) 348 ITR 380, wherein it has been laid down that it was not necessary for the assessee to include the excise duty in the value of the closing stock. The argument of the assessee does not hold good in the facts of the present case. It has been consistently laid down that the opening stock and closing stock should be maintained in the same manner either at the cost price or at the sale price. The assessee has not come out with the case that in the opening stock, the excise duty was not included. The explanation furnished by the assessee is that since in the subsequent assessment year, the turnover was less than one crore of rupees and as such, the goods were not liable ....