2013 (6) TMI 115

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..... of filing of the return of income and that was how the amount was available considering the fact that the assessment had been framed and the show-cause notice was issued much after the close of the accounting year. The assessment year being 1997-98 the provisions of section 145A inserted by the Finance (No. 2) Act, 1998 with effect from April 1, 1999 could not be invoked - In favour of assessee.
Shri G. D. Agarwal And Shri D. K. Tyagi,JJ. For the Appellant : Shri Gaurav Nahta, AR For the Respondent : Shri Prakash Dubey, Sr. DR ORDER Per Shri D. K. Tyagi, JM:- This appeal by the assessee has been preferred against the order dated 02.01.2009 of CIT(A) VI, Ahmedabad for the assessment year 2003-04. The assessee has taken following .....

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..... f accounts of the assessee were got audited under the provisions of Companies Act as well as necessary audit report was also obtained under the provisions of Section 44AB of the Income tax Act, 1961. The assessee had consistently followed the accounting practice OF not including excise duty in the valuation of the closing stock since it had accounted for purchases net of excise duty, which is recognized and mandatory as per the accounting standards issued by the Institute of Chartered Accountants of India. The excise duty being collection on behalf of the Government was accounted for separately and the said account was credited to excise duty collected through sale bills and similarly account was debited for payments and cenvat be taken. As .....

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..... ayable on the finished goods lying in the closing stock at the end of the relevant accounting period had been paid in the subsequent year before the due date of filing of the return of income and that was how the amount was available considering the fact that the assessment had been framed and the show-cause notice was issued much after the close of the accounting year; (b) the Assessing Officer had not had recourse to sub-section (3) of section 145 of the Act. The assessee was following the mercantile system of accounting but it was not the case of the Assessing Officer that the Assessing Officer was not in a position to deduce true profits of the year under consideration. Such duty of Central excise if added to enhance the value of closi .....

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