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TMI Blog2019 (10) TMI 602X X X X Extracts X X X X X X X X Extracts X X X X ..... against its investment made in Mutual Fund amounting to ₹ 5 lacs only. Therefore, the appeal of the Revenue was dismissed. Considering the aforesaid facts on similar issue we do not find any merit in the ground of appeal of the Revenue, therefore, the same stand dismissed. - Decided against revenue Addition of unutilised CENVAT credit u/s. 145A - HELD THAT:- There can hardly be any dispute in view of catena of above referred case law that the impugned addition is a revenue neutral case since any adjustment made in closing stock follows a consequential increase in opening stock of the succeeding assessment year as well. The assessee has already demonstrated during the course of lower appellate proceedings that there is no revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other appeal filed by the Revenue for A.Y. 2010-11, arise from order of the CIT(A)-1, Ahmedabad dated 26.02.2015, in proceedings under section 143(3) of the Income Tax Act, 1961; in short the Act . ITA No. 1718/Ahd/2015(Revenue s Appeal):- 2. The fact in brief is that return of income declaring total income of ₹ 12,55,06,230/- was filed on 30.09.2010. The case was subject to scrutiny and notice u/s. 143(2) of the Act was issued on 30.08.2011. The assessment u/s. 143(3) of the Act was completed on 18.03.2013. Further facts of the case pertaining to the grounds of appeal filed by the Revenue are discussed while adjudicating these grounds of appeal as under. First Ground of Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned exempt income. The CIT(A) has restricted the disallowance to the extent of ₹ 2,500/- for administrative expenses incurred on earning exempt income. Third Ground of Appeal:- Deleting the addition of ₹ 90,72,239/- on account of disallowance of unutilised CENVAT credit:- 7. The AO noticed that there was unutilised CENVAT credit shown by the assessee in Column No. 22(a) of 3CD Report and further noticed that assessee has followed exclusive method for accounting CENVAT as against inclusive method mandated u/s. 145A of the Act. The AO has observed that as per the provision of Sec. 145A of the Act the unutilised CENVAT credit had to be included in the closing stock of raw mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has erred in law as well as on facts in allowing the impugned amortization on preliminary expenses to the assessee. He however fails to dispute the crucial fact that the impunged assessment year is not the first year of the assessee raising the instant amortization claim. It has come on record that the Assessing Officer had himself allowed the very relief of 20% in preceding assessment year whilst framing a regular assessment. The instant issue before us is therefore merely a consequential one since the earlier relief granted to the assessee hereinabove has attained finality. We therefore see no reason to interfere the CIT(A) s above extracted conclusion deleting the impugned disallowance of amortization of preliminary expenses as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... na of above referred case law that the impugned addition is a revenue neutral case since any adjustment made in closing stock follows a consequential increase in opening stock of the succeeding assessment year as well. The assessee has already demonstrated during the course of lower appellate proceedings that there is no revenue effect either way if it follows inclusive or exclusive method qua the CENVAT credit. Learned Departmental Representative fails to rebut this clinching factual position. We therefore affirm the CIT(A) s findings under challenge. The Revenue fails in its last substantive ground as well. Respectfully following the decision of the Co-ordinate Bench on similar issue and identical fact in the case of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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