2013 (6) TMI 115

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....pellant b holding that the A.O. was justified in issuing notice u/s 148 for reopening the assessment. 2) The Ld. CIT(A) also erred in law and on facts in confirming the addition of Rs. 14,09,510/- on account of non inclusion of excise duty in the closing stock." 2. At the time of hearing no submissions were made by the Ld. A.R. of the assessee in respect of ground No.1 and hence the same is dismissed as not pressed. 3. The 2nd ground relates to the addition of Rs. 14,09,510/- on account of non inclusion of excise duty in the closing stock. The assessee is carrying on the business of manufacturing of MS and GI tubes and pipes and also deals in trading of HR coils. During the assessment proceeding the A.O. observed that the excise du....

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.... included in the valuation of the closing stock then similar effect was required to be given to the valuation of opening stock as held by the Hon'ble High Court of Delhi in the c se of CIT Vs Mahavir Aluminium Ltd. 297 ITR 77. If the closing stock is valued on gross basis, the value is increased accordingly then value of opening stock for the assessment year 2004-05 will be required to be recomputed and it will lead to recomputation of all the subsequent years. As this would not effect on the profits even if excise duty is included in the valuation of stock, the addition made by the A.O. deserves to be deleted. However, Ld. CIT(A) did not accept these submissions of the assessee and confirmed the action of the A.O. Further aggrieved, no....