2017 (12) TMI 1562

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.... Billaiya, Accountant Member With this appeal the Revenue has challenged correctness of the order of CIT(A)- 8, Ahmedabad dated 08.12.2014 pertaining to assessment year 2011-12. 2. The only grievance of the Revenue is that the CIT(A) erred in deleting the addition made by the Assessing Officer on account of disallowance made under section 145A of the Income Tax Act, 1961 ('the Act' hereinafter)....

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.... 76,66,255/-. 4. Assessee carried the matter before the CIT(A) and explained that it is following exclusive method of account by which it is crediting MODVAT/CENVAT separately and the same is not charged to Profit & Loss Account. Therefore, there is no reason why the same should be adjusted in the value of closing stock. 5. After considering the facts and submissions, the CIT(A) found the method....

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....method. In our considered view, if the provisions of section 145A has to be followed, the purchases would have to be adjusted for the duty/tax credits and correspondingly unconsumed stock of materials would also be valued at billed cost. In any case, parity has to be maintained and while making the addition on account of unutilised MODVAT/CENVAT credit, it disturbs the party of accounting. We also....