2013 (8) TMI 180

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....Anil Chaturvedi, A. M. 1. This appeal is filed by the Revenue against the order of CIT(A)-1, Ahmedabad dated 1.11.2012 for assessment year 2006-07. On the date of hearing, as application was moved by the Assessee for adjournment. The adjournment application was rejected and the issue was decided on the basis of material on record. 2. The facts as culled out from the order of the lower author....

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....hed goods not cleared as per factory was estimated at R. 47.38 lacs and custom duty on stock lying at port estimated at Rs. 46.5 lacs was not provided for in the books and was also not considered in the valuation of Inventories. Assessing Officer was of the view that as per provision of Section 145A inserted with effect from 1.04.1999 excise duty has to be added while valuing finished goods. He th....

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....n as under: "At the time of hearing, both the parties agreed that the issue is now squarely covered by the decision of Hon'ble Jurisdictional High Court in the case of ACIT Vs. Narmada Chematur Petrochemicals Ltd. 327 ITR 369 (Guj.), wherein following was held: "Held, dismissing the appeal, that Tribunal was justified in excluding the excise duty at the time of valuation of the closing stock....

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....ofits of the year under consideration. Such duty of Central excise if added to enhance the value of closing stock would result in enhanced opening stock on the first day of the next accounting period, namely, April 1, 1997. So the next year's profits would get depressed accordingly, over a period of time the whole exercise would even out, in other words, be revenue natural. At the same time while ....