2017 (12) TMI 1665

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.... of the Income Tax Act, 1961; in short "the Act". Heard both the parties. Case file perused. 2. We notice at the outset that the CIT(A)'s findings under challenge elaborately discuss the relevant facts, above sole issue in question as well as Assessing Officer's reasoning in relation to the impugned unutilized CENVAT credit as under: "2.3 Decision: I have carefully considered the facts of the case, the assessment order and the written submission of the appellant. The AO has made an addition of the unutilised CENVAT credit shown in the balance sheet of the appellant. It was held by the AO that it cannot be treated as advance given to the Government on account of excise payable. The appellant on the other hand has explained that the CE....

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....for the purpose of letting out has also been reduced by the CENVAT credit transferred by it to a separate account and accordingly no depreciation on the CENVAT portion has been claimed by the appellant. The observations of the AO that the credit of MODVAT / CENVAT is an incentive is not justified. The appellant cannot claim the refund on this account if due to some circumstances the business has to be closed. The view has been upheld by Hon'ble Supreme Court in the case of Indo Nippon Chemicals Ltd. [261 ITR 275]. It has been held by the Hon'ble Supreme Court that MODVAT credit was an irreversible credit available to manufacturers and would not amount to income which was liable to be taxed under the Act. Therefore, the MODVAT / CENV....