method for valuation of inventory instead of inclusive method mandated u/s
145A .
3. The CIT(A) has erred in law and on facts ... Mumbai) the year under
consideration was assessment year 1999-2000. Section 145A was inserted
with effect from 1.4.99. In other words assessment year
followed exclusive method of accounting in contravention of
the provisions of section 145A which mandates inclusive method for
valuation of inventory ... Revenue's appeal revolves around
applicability of Section 145A of the Act towards alleged under
valuation of closing stock. The learned AR submitted that
exclusive method for accounting CENVAT as
against inclusive method mandated u/s 145A of the Act.
2. The CIT(A) has erred ... Ground No.1 relates to addition under s.145A of the Act on
account of adjustment of closing stock of the assessee by duty
added and same on opening stock is deducted as
provided u/s 145A of the Act. As per the working duly certified by tax
auditor ... appellant therefore submits that Rs. 17,09,894/- be deducted u/s 145A of
the Act.
4.3 The Ld. CIT(A) has further erred
deleting the addition of Rs.31,11,757/- made u/s. 145A of the
Act.
2). The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad ... assessee and made
addition of Rs. 31,11,757/- u/s. 145A and disallowed exemption of Rs.
43087175/- u/s. 10B.
7. Against the order
respect of inclusion of excise duty in closing
stock u/s145A of the Act.
3. The brief facts are that the Assessing Officer observed ... value of the closing stock as required under section 145A of
the Act where the closing stock was to be shown being inclusive
Gujarat State Fertilizers & Chemicals Ltd.
applicability of provisions of sec. 145A of the Act, inserted by the Finance ... pointed out that the ld. CIT(A), ignoring the
provisions of sec. 145A of the Act, relied upon a decision
decided the issue against the assessee on
the ground that section 145A was not in existence when decision for
excluding excise duty and sales ... rendered. After insertion of
section 145A the position has changed and, therefore, excise duty and
sales-tax has to be included for the purpose
181ITR 400.
1.2. Rebuttal:
It is submitted that insertion of section 145A , 145B ,
56(2)(viii) and 57(iv) by the Finance ... hardship to the taxpayers. With a view to
mitigate the hardship section 145A has been substituted
and clause (viii) in subsection (2) of section
stock valuation made by the Appellant as per AS 2 and
section 145A of the Act
ii. in not appreciating the fact that no adverse ... Excise Duty and
CENVAT, indicating that the valuation method prescribed under Section 145A
of the Income Tax Act would not affect its financial statements
