2013 (6) TMI 663

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.... 2.1 Explaining the assessee's case, it was submitted by the ld. AR, the assessee's counsel, that the only aspect of the assessment with which the ld. CIT has found fault with is that the assessee is maintaining its accounts on an exclusive basis, i.e., valuing its inventories as well as purchases and sales, at net of excise duty, which is being accounted for separately. Though, therefore, admittedly there is a technical breach of section 145A of the Act, the method and the presentation of the assessee's accounts is tax-neutral, i.e., with reference to section 145A of the Act. No prejudice is as such caused to the Revenue. An order to be liable to revision u/s.263 has to be both erroneous as well as prejudicial to the interest of the Reve....

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....f the opening stock gets crystallized on the basis of the value of the closing stock for the immediately preceding year. Suitable directions in this regard be made if the impugned order is to be confirmed. Reliance was placed by her on the decisions by the tribunal in support of the said propositions, as well as the recent decision by the hon'ble jurisdictional high court in the case of CIT vs. Mahalaxmi Glass Works P. Ltd. [2009] 318 ITR 116 (Bom) (copy on record) as well as in the case of CIT vs. Kolsite Maschine Fabrik Ltd. (in ITA No.302 of 2009 dated 20.04.2009) following it. 2.2 The ld. DR, on the other hand, would support the findings by the ld. CIT. The matter had not been examined at all by the A.O., and which would, therefore, ....

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....otwithstanding the claims made in this regard, the mandate of the section 145A has to be scrupulously followed. The direction ld. CIT for observing the law would also take into account the decisions by the hon'ble courts, including by the hon'ble jurisdictional high court being relied upon by the assessee before us. The ld. AR during hearing has informed us that the assessing authority has further proceeded to add the entire amount of unutilized cenvat credit of Rs.10.27 crores to its income, attributing the entire of it to the closing stock of the raw material. We are unable to read any such inference as arising from the impugned order, with we having further clarified that all it amounts to is observing the provision of section 145A faith....