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Issues involved: Appeal against deletion of addition u/s 145 of the IT Act, 1961.
Facts: The assessment was completed u/s 143(3) of the Income-tax Act, 1961, determining total income. Subsequently, unutilized CENVAT/MODVAT credit was not credited to Profit & Loss account. The assessment was reopened u/s 147 with a notice u/s 148 served. The assessee failed to reconcile the difference in stock valuation, leading to an addition of the unutilized credit amount. Arguments: The appellant contended that the method of accounting, whether inclusive or exclusive, did not impact the profit. Citing guidelines from the Institute of Chartered Accountants of India, the appellant argued for deletion of the addition. The appellant also relied on a jurisdictional tribunal order in a similar case where the addition u/s 145A was deleted. Judgment: The ld. CIT(A) deleted the addition based on the decision of the ITAT, Ahmedabad, in a similar case, stating that the excise duty payable on closing stock had been deposited. The Revenue appealed against this decision. After hearing both parties, the Tribunal found no merit in the Revenue's arguments and dismissed the appeal. Ground nos. 2 and 3 were dismissed as they were mere prayers without submissions. Conclusion: The appeal against the deletion of the addition u/s 145A was dismissed by the Tribunal based on the reasoning that the excise duty payable had been deposited, as per the decision in a similar case.
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