2014 (6) TMI 561

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..... M. Jagtap, AM: This appeal is preferred by the Revenue against the order of ld. CIT(A)- 27, Mumbai dated 30.11.2012 whereby he deleted the addition made by AO on account of excise duty/modvat credit by invoking the provisions of section 145A of the Income Tax Act, 1961 (the Act). 2. The assessee in the present case is a partnership firm which is engaged in the business of manufacturing of ....

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....dingly, the value of closing stock of the assessee was enhanced by the AO to that extent and an addition of Rs.23,11,296/- was made to the total income of the assessee. The AO also found that the assessee has claimed expenditure of Rs.76,01,770/- on account of excise duty under the head "duties and taxes". According to the AO, since exclusive method of accounting was followed by the assessee where....

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....t worked out by following the inclusive method of accounting. It was submitted that even if adjustments as envisaged u/s 145A of the Act are made, the same would be revenue neutral warranting no addition to the total income of the assessee as made by the AO. The ld. CIT(A) found merits in the submissions of the assessee and deleted the addition made by AO on excise duty/modvat. Aggrieved by the or....

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....ting for the valuation of purchase and sale of goods as well as inventory, the further adjustment is required to be made to include the amount of excise duty in such valuation as per the provisions of section 145A of the Act. At the time of hearing before us, the ld. Representatives of both the sides have not disputed this position. The ld. counsel for the assessee has submitted that detailed work....