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"On perusal of records it is found that the assessee company is the manufacturing of biscuits and does job work mainly for M/s. Parle Biscuit (P) Ltd and shows its receipt as processing charges. As per TDS certificate it appears that assessee company had received total processing charges amounting to Rs.2,55, 14,615/ - but the amount credited in the profit and loss account is Rs. 1,86,24,248/ - as processing charges and Rs.1 ,62,798/ - as office expenses from Parle.

The assessee replied the show cause notice vide letter dated 08.10.2014 in which he has filed evidence regarding payment of excise duty and the relevant details filed by the assessee reads as under:

"Regarding the evidences of payment of Excise Duty we enclose the followings:
a. Copy of payment advice from Parle Biscuits Pvt. Ltd. b. Copy of TR 6 Excise Duty Payment Challans c. Copy of concerned TDS certificates.
The above documents would amply reveal that payment of excise duty was actually done by PARLE for and on behalf of the assessee company."

The Parle Biscuit Pvt. Ltd. has also confirmed the reimbursement of excise duty by the assessee company, the copy of confirmation letter is enclosed in assessee's paper book page 77. Ld. Counsel further contended that neither the excise duty was debited in the assessee's account nor credited. According to him, the CIT while passing revision order was under misconception. On the other hand, Ld. CIT, DR Shri Ravi Jain only relied on the order of revision passed u/s. 263 of the Act by CIT.

5. We find that the assessee has filed the details of excise duty payment at pages 24 to 42 in its paper book whereby the challan in Form TR-6 are enclosed, which proves that the excise duty is paid within the due dates. Once the payment made towards M/s. Nabisco Confectionery & Food(s) P. Ltd.AY 2007-08 processing charges to the assessee by Parle Biscuits Pvt. Ltd. included payment made on account of reimbursement of excise duty and other levies imposed from time to time in respect of biscuit manufactured by the assessee nothing remains the issue. The assessee has neither debited nor credit in the accounts. Under these circumstances, Ld. Counsel for the assessee stated that no revision proceedings can be done and revision order passed by CIT u/s. 263 of the Act revising the assessment framed by AO is invalid and is to be quashed. We find that entire details regarding reimbursement of excise duty amounting to Rs.53.65 lacs was filed before the AO during the course of assessment proceedings vide letter dated 15.03.2013, which is enclosed in assessee's paper book at page 73. The relevant reconciliation is reproduced from the letter which reads as under:

Even the other party Parle Biscuit Pvt. Ltd. has also confirmed the reimbursement of excise duty by the assessee company, the copy of confirmation letter is enclosed in assessee's paper book page 77. Moreover assessee never claimed this as an expenditure, which is evident from records. In such facts of the case this revision will not stand on merits of the case. Accordingly, this appeal of the assessee is allowed.

10. In the result, appeal of assessee is allowed.

11. Order is pronounced in the open court on 29.04.2015.