9911796707
TMI Blog2018 (12) TMI 1500X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee sought to explain that this excise duty provision on closing stock of finished goods gets effectively adjusted with the available input credit in the subsequent year before us due date of filing of return of income under 139(1) of the Act. We find that these facts are not properly appreciated by the CIT and we hold that the Ld. CIT had erroneously invoked revisionary jurisdiction in the instant case as there is absolutely no error in the order of the AO or any prejudice that is caused to the interest of the revenue in the instant case. From the facts and evidences available on record, we hold that the assessee is entitled for deduction u/s 43B in respect of provision for excise duty on closing stock of finished goods. CIT erre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessee arises out of the order of the Learned Principal Commissioner of Income Tax-1, Kolkata [in short the ld CIT] in Memo No. Pr. CIT- 1/Kol/Revision u/s 263/ 2016-17/13877-80 dated 22.02.2017 against the order passed by JCIT, Range-3, Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short the Act ) dated 30.03.2015 for the Assessment Year 2012-13. 2. The only effective issue in this appeal is as to whether the Ld. Administrative CIT was justified in invoking revisional jurisdiction u/s 263 of the Act, in the facts and circumstances of the case. 3. The brief facts of this appeal are that the assessee is a public limited company engaged in the business of manufacturing and trading of iron and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ₹ 57,47,452/- Chengalpet Division ₹ 1,54,35,922/- Radice Division ₹ 29,64,356/- Venkatesh Division ₹ 42,34,366/- Total ₹ 5,74,21,924/- This provision for excise duty on closing stock of finished goods was debited in the profit and loss account and claimed as deduction and correspondingly the same was also included by the assessee company in the valuation of closing stock of finished goods in accordance with the provisions of Section 145A of the Act, on which fact there is no dispute. The tax auditor in the tax audit report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 1,29,66,452/- 31.05.2012 ₹ 99,04,498/- 30.06.2012 ₹ 1,01,53,156/- Total ₹ 3,30,24.106/- ii) Special Division 30.04.2012 ₹ 46,46,054/- 31.05.2012 ₹ 53,71,506/- Total ₹ 1,00,17,560/- iii) Chengalpet Division 30.04.2012 ₹ 59,43,360/- 31.05.2012 ₹ 63,30.807/- 30.06.2012 ₹ 68,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that is caused to the interest of the revenue in the instant case. From the facts and evidences available on record, we hold that the assessee is entitled for deduction u/s 43B of the Act in respect of provision for excise duty on closing stock of finished goods. 4.2. We also find that the Ld. CIT erred in concluding that no enquiry was made with regard to this excise duty component on valuation of closing stock by the ld. AO. We find from pages 95 to 98 of the Paper Book filed by the assessee before us contains questionnaire dated 11.11.2014 issued together with the notice u/s 142(1) of the Act wherein, the ld. AO had sought for calculation of valuation of closing stock during the course of assessment proceedings. This has been duly rep ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
