2018 (12) TMI 1500

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....Tax Act, 1961 (in short "the Act") dated 30.03.2015 for the Assessment Year 2012-13. 2. The only effective issue in this appeal is as to whether the Ld. Administrative CIT was justified in invoking revisional jurisdiction u/s 263 of the Act, in the facts and circumstances of the case. 3. The brief facts of this appeal are that the assessee is a public limited company engaged in the business of manufacturing and trading of iron and steel products and also deriving income from renting activities. The return of income for assessment year 2012- 13 was filed declaring total income of Rs. 24,49,87,560/-. The assessment was completed u/s 143(3) of the Act on 30.03.2015 determining total income of the assessee at Rs. 41,52,13,220/- after maki....

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....finished goods in accordance with the provisions of Section 145A of the Act, on which fact there is no dispute. The tax auditor in the tax audit report had observed that a sum of Rs. 30,45,000/- was paid as excise duty on sales before the due date of filing of return of income u/s 139(1) of the Act. In this regard, the ld. AR placed on record the Central Excise Returns wherein, it is evident that Jamshedpur Unit was engaged only in job work activities and accordingly deprived of enjoying of the benefit of input credit on purchases for adjustment towards excise duty payable on sale of finished goods. It is not in dispute that the assessee maintains division wise details of input credit and division wise details of excise duty payable on sale....

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.... the excise duty liability arises only on removal of finished goods from the factory or ware house of the assessee. However, as per the provisions of section 145A of the Income Tax Act, 1961, the excise duty component on closing stock of finished goods is required to be provided for inclusion in the valuation of closing stock of finished goods thereby making it revenue neutral. The assessee sought to explain that this excise duty provision on closing stock of finished goods gets effectively adjusted with the available input credit in the subsequent year before us due date of filing of return of income under 139(1) of the Act. We find that these facts are not properly appreciated by the Ld. CIT and we hold that the Ld. CIT had erroneously in....