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TMI Blog2020 (2) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... A should be allowed to the respondent and deducted from the profits subject to tax in India. Following its earlier decision in the case of the respondent itself for the assessment year 2009-10 [ 2017 (2) TMI 39 - ITAT MUMBAI] the first appellate authority took the view that deduction on account of adjustment under Section 145-A should be allowed. Irrespective of the fact that Revenue s appeal for the assessment year 2009-10 was dismissed on withdrawal on the ground that the tax effect was below the prescribed limit, we have independently applied our mind to the said order which has been followed by the Tribunal for the present assessment year and we find that the view taken by the first appellate authority as affirmed by the Tribunal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 145-A of the Income Tax Act, 1961 on the ground that the assessee is consistently following the same method ignoring the fact that the same was not in accordance with the provisions of law? 3. Whether on the facts and in the circumstances of the case, the Tribunal was right in confirming the decision of the Commissioner without appreciating the fact that in the working submitted as per formula laid down in the case of M/s. Hawkins Cooker Ltd., the assessee has reduced the excise duty on closing stock of finished goods twice to arrive at the adjustment under Section 145-A of the Income Tax Act, 1961? 4. Respondent is an assessee under the Income Tax Act, 1961 (briefly 'the Act' hereinafter). It is a company engaged in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent appeal by the revenue. 8. Respondent had explained before the assessing officer that the adjustment under Section 145-A was on account of variation in excise duty paid by procuring raw materials and discharge of excise duty liability on non-finished goods. It was also mentioned that the adjustment was due to difference in CENVAT credit availed on opening stock and purchases of raw material made during the year against the CENVAT credit utilized on discharge of excise duty liability on sale of finished goods. Respondent had pointed out that there was always excess amount of CENVAT credit taken on raw materials remaining unutilized as excise duty payable on the finished goods manufactured from those raw materials was less. 9. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first appellate authority took the view that deduction on account of adjustment under Section 145-A should be allowed. 10. When the matter came up before the Tribunal, Tribunal also relied upon its own decision in the case of the respondent itself for the assessment year 2009-10 and upheld the finding of the first appellate authority. The decision of the Tribunal in the case of the respondent for the assessment year 2009-10 is extracted hereunder: 10. Rival contentions have been heard and record perused. We have also deliberated on the judicial pronouncements referred by AO and CIT(A) in his order as well as cited by ld. AR and DR during the course of hearing before us, in the context of factual matrix of the case. From the record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., is not applicable to the facts of this case. The CIT(A) also taken into consideration increase in case of opening stock on inclusion of excise duty on which MODVAT credit is available/availed and also increase in purchase of raw materials, increase in sales of finished goods on inclusion of excise duty. The excise duty paid on sale of finished goods, as a result of inclusion in sales, were also taken into account. After giving detailed finding at para 3.3 to 3.12, the CIT(A) deleted the addition. The detailed finding recorded by CIT(A) after observing that assessee has been consistently following the same method of adjustment u/s.145A over the years has not been controverted by Id. DR by brining any positive material on record. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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