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TMI Blog2013 (11) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of assessee’s sister concern case R.R.Kabel [2012 (7) TMI 38 - ITAT MUMBAI] – Decided in favor of Assessee. - ITA No. 2180/Mum/2012, ITA No.8503/Mum/2011 - - - Dated:- 13-9-2013 - Sh. D. Manmohan And Rajendra, JJ. For the Appellant : Shri Rajan R. Vora Shri Nikhil Tiwari For the Respondent : Shri V. V. Shastri ORDER Per Rajendra, A.M:- Challenging the orders dt.12-12-2011 and 10.08.2011respectively of the CIT(A)-13, Mumbai Assessing-company has filed similar grounds of appeal-the only difference is of amounts involved. As the issue involved in both the cases are same, so we are adjudicating the appeals by common order for sake of convenience . ITA No. 2180/Mum/2012 AY 2007-08 Grounds of appeal, filed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stments u/s.145A of the appellant relied/based on the Guidance Note of The Institute of Institute of Chartered Accountants of India supported by judicial pronouncements, and as per submissions made by appellant. 2. Appellant craves, leave to add, amend, alter, delete and/or modify the above grounds of appeal on or before the final date of hearing." ITA No. 8503/Mum/2011 AY 2008-09 For AY- 2008-09 following Grounds of appeal have been filed by the assessee : 1.Additions u/s.145A: 1.1.That the learned CIT(A) 13 erred on the facts, in the circumstances of the case and in law in not allowing, the working of adjustments as done by the appellant u/s.145A and also erred in enhancing the addition u/s.145A as under: Particulars ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant relied/based on the Guidance Note of The Institute of Chartered Accountants of India supported by judicial pronouncements. 2. Appellant craves, leave to add, amend, alter, delete and/or modify the above grounds of appeal on or before the final date of hearing." ITA No. 2180/Mum/2012 AY 2007-08 2. Assessee-company, engaged in the business of manufacturing enameled copper winding wires, filed its return of income on 18.10.2007 declaring to total income of Rs. 98.54 lacs.Assessment was finalised on 23. 12.2009 u/s.143 (3)of the Act by the Assessing Officer(AO) determining the total income of the assessee at Rs.1.88 Crores. 2.1.Effective ground of appeal is about an addition of Rs. 3, 43, 000 /-, confirmed by the First Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition by manufacturing goods, that it did not change the cost of inputs.Comparing the inclusive method and exclusive method of guidance-note he worked the profit u/s. 145A of the Act.Finally, he added amount of Rs. 86.85 lacs to the income of the assessee and held that no corresponding adjustment in valuation of opening stock was made. 2.1.Assessee preferred an appeal before the FAA. In his order, he gave details of excise position as per section 145A of the Act and held that addition under the said section should be restricted to Rs.3.43 lacs. 2.2.Before us, Authorised Representative (AR) submitted that adjustment required u/s. 145A of the Act were revenue neutral, that the excise duty, amounting to Rs.15, 19, 53, 402/-, payable on fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and suggested by the guide note issued by the ICAI.From the accounts submitted before us, it is found that excise duty of 15.19 Crores was paid by the assessee-company before the due date of filing of return.At page no.2 of the paper book details have been furnished with regard to Modvat adjustment. From the working given by the assessee one thing is clear that treatment given by the assessee about excise duty is revenue neutral.We have also perused the accounts prepared by the company following the inclusive method as well as the exclusive method (Page 83 of the PB) .We find that after necessary adjustments made by the assessee, in pursuance of the guide note issued by the ICAI, there is no difference in the net result from taxation point ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has fulfilled the conditions laid down by the provisions of section 145A of the Act.Therefore, reversing the order of the FAA, we decide ground no.1 in favour of the assesse. As a result, Appeal filed by the assessee stands allowed. ITA No. 8503/Mum/2011 AY 2008-09 As stated earlier, grounds for the year under consideration are similar to the grounds for AY.2006-07.The only difference is that of amount involved with regard to adjustment made u/s. 145A of the Act. Effective ground is about adjustment , amounting to Rs.1, 42, 00, 000/-, made under the said section. While finalising the assessment for the year AO had made addition of Rs.54.06 lakhs, but the FAA, in appellate proceedings, enhanced it to Rs.1.42 Crores.We find that FAA h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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