2014 (2) TMI 1381

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.... filed by the assessee is directed against the order of the Ld.CIT(A)-12, Mumbai dated 24.11.2010 for the Assessment Year 2006-07. 2. In this appeal, the assessee has agitated the action of the Ld.CIT(A) in upholding the addition of Rs. 390.86 lakhs to value of closing stock on account of CENVAT credit under section 145A of the Income Tax Act. 3. Briefly stated, the assessee, a company engag....

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....ble to it without making corresponding increase in the opening stock by adopting inclusive method of stock valuation. On appeal, the Ld. CIT(A), while upholding the addition of CENVAT to closing stock, by following the decision of the jurisdictional High Court in the case of Mahalaxmi Glass Works P. Ltd. 318 ITR 116, directed the AO to make corresponding adjustments in opening stock of the year. A....

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....ndatory statutory provision, which has to be followed and accordingly upheld the action of the AO to that extent. However, following the decision of the jurisdictional High Court in the case of Mahalaxmi Glass Works P. Ltd (supra), wherein it has been held that to give effect u/s 145A, if there is any change in closing stock at the end of the year there must be necessarily of corresponding adjustm....

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....inventories as it has direct bearing on valuation of stock. The Tribunal in the said decision has considered the decision of the Hon'ble Bombay High Court in the case of Mahalaxmi Glass Works P. Ltd (supra) which has been relied by the Ld.CIT(A). Therefore, following the aforementioned decision of the Tribunal, we modify the direction of the Ld.CIT(A) in such a manner that the issue is remitted ba....