TaxTMI 
TaxTMI 
2020 (2) TMI 1283
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.... Tribunal, Bench 'C', Mumbai in I.T.A.No. 1320/Mum/2015 for the assessment year 2010-11. 3. The appeal has been preferred on the following questions stated to be substantial questions of law: "1. Whether on the facts and in the circumstances of the case, the Tribunal was right in not appreciating the guidelines of Institute of Chartered Accountants of India (ICAI) that adjustment made under Section 145-A of the Income Tax Act, 1961 in cases where exclusive method is followed will be revenue neutral? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in upholding the adjustment made under Section 145-A of the Income Tax Act, 1961 on the ground that the assessee is consistently fo....
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....fore the Commissioner of Income Tax (Appeals)-22, Mumbai, the first appellate authority, the aforesaid addition was deleted vide order dated 10.12.2014 on the grounds and reasons mentioned therein. As a matter of fact, the first appellate authority followed its own order in the case of the respondent for the assessment year 2009-10. 6. Aggrieved by the aforesaid, Revenue approached the Tribunal in appeal. Tribunal, after hearing the matter, took note of the finding returned by a Co-ordinate Bench in the case of the respondent for the assessment year 2009-10 and following the said decision dismissed the appeal filed by the revenue. 7. Hence, the present appeal by the revenue. 8. Respondent had explained before the assessing officer ....
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....t respondent followed the above accounting method while accounting for its excise duty paid on raw materials and final products. Respondent had explained which was accepted by the first appellate authority that ICAI mandates usage of exclusive method as per which the amount of excise duty actually paid on inputs cannot be debited to the profit and loss account. But this was an expenditure which had actually been incurred and thus, adjustment under Section 145-A should be allowed to the respondent and deducted from the profits subject to tax in India. Following its earlier decision in the case of the respondent itself for the assessment year 2009-10, the first appellate authority took the view that deduction on account of adjustment under Se....
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....the assessee on raw materials is much more than the duty payable on final products, the hypothetical equation drawn by the AO was not applicable to the facts of the present case. The categorical finding has also been recorded by the CIT(A) to the effect that because of "inverted duty structure" huge balance has been accumulated in the CENVAT Credit Receivable Account, hence, the assessee's case is exception to the general rule. The CIT(A) is also dealt with the decision of the Tribunal in the case of Hawkins Cooker Ltd. and after calling the facts and figures of the assessee, came to the conclusion it that formula laid down in the case of Hawkins Cooker Ltd., is not applicable to the facts of this case. The CIT(A) also taken into consid....