TaxTMI 
TaxTMI 
2019 (4) TMI 1108
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....x Act, 1961(hereinafter referred to as "the Act") dated 11/09/2015 relevant to Assessment Year (AY) 2008-09. 2. The Revenue has raised following ground of appeal:- 1. That under the facts and circumstances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the addition made by the AO of Rs. 90,61,172/- u/s.145A. 3. The only issue raised by the Revenue is that the Ld. CIT(A) erred in deleting the addition made by the Assessing Officer for Rs. 90,61,172/-u/s 145A of the Act. 4. The facts of the case are that the assessee is a partnership firm and engaged in the business of manufacturing and trading of electronic goods and spares. The assessee during the assessment proceedings claimed that it has been following the excl....
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.... then the unconsumed stock also must necessarily be clued in the same manner. The other method is the "net method", in which the raw material purchased is valued at the actual cost, that is the actual purchase price and, on this, Modvat credit would be available. If this method is to be adopted, then uniformly the same method must be adopted while valuing the unconsumed stock at the end of the year. Whichever method one adopts, the result would be same..." 5.2.1 It is seen that the AO has only partially followed the provisions of Section 145A of the I.T. Act. I am inclined to agree with the contention of the appellant that it is not appropriate to include the amount of tax etc includible in the value of closing stock only without modify....
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....ing stock of the assessee. 9. However, the Ld. CIT(A) deleted the addition made by the Assessing Officer by observing that the assessee has been following its method of valuation consistently and there was no dissatisfaction of the Assessing Officer about the correctness/completeness of the books of accounts of the assessee. 10. From the preceding discussion, we note that the assessee has been recording its transactions of purchase, sales, and valuation of inventories, net of CENVAT/VAT consistently. Thus, if the inventory of closing stock is enhanced by the amount of CENVAT credit attributable to it, then the amount of corresponding purchases should also be increased by the said amount which will result in tax neutral exercise. Thus, in ....