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TMI Blog2012 (6) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal, the revenue has challenged impugned order of the Ld CIT(A)-III, Aurangabad dated 25/02/2011 for the A.Y. 2004-05. 2. The revenue has raised the following grounds in the appeal : "1. Whether on the facts and circumstances of the case the CIT(A) is correct in deciding that the unutilized MODVAT credit is not a part of closing stock ? 2) Whether the Ld. CIT(A) was right in deciding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble High Court of Bombay in the case of CIT V/s. Indo Nippon Chemicals Co. Ltd., 245 ITR 384. The operative part of the finding of Ld. CIT(A) is as under : "7.2 I have carefully considered the facts of the case, assessment order of the A.O. and submission of the appellant. The contention of the appellant that it has adopted exclusive method for valuing opening stock, purchases, sales and closin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w material is purchased. Hence, it is clear that whether one applies the net method or the gross method the gross profit remains the same." Further the above decision in the case of Indo Nippon Chemical Co. Ltd. has been confirmed by Hon'ble Supreme Court in the year 2003 reported in 261 ITR 275, wherein it has been held that merely because Modvat credit is an irreversible credit available to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e adjustment of the closing stock, then the consequential effect should have been given to the opening stock also. We find no reason to interfere with the order of Ld CIT(A) as the same is in accordance with the law. Also, in the case of CIT Vs. Mahalaxmi Glass Pvt. Ltd., 318 ITR 116 (Bom), it is held that wherein the closing stock un-utilised modvat credit is adjusted, similar adjustment should b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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