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TMI Blog2014 (2) TMI 1381X X X X Extracts X X X X X X X X Extracts X X X X ..... COURT ] wherein it has been held that to give effect u/s 145A, if there is any change in closing stock at the end of the year there must be necessarily of corresponding adjustment in the opening stock of that year and accordingly directed the AO to calculate disallowance/addition after verification. Tribunal in the case of Jindal Iron Steel Company Ltd. [ 2013 (1) TMI 182 - ITAT MUMBAI ] has held that if unutilized MODVAT credit is added to closing stock, then similar adjustment should be made even in opening stock and purchases. The Tribunal further held that from the plain reading of provisions of section 145A, it is evident that for the purpose of valuation of purchase and sale of goods and inventories on account of tax, duty, cess or f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturer and dealer of laminates and Multilayer collapsible laminated tubes, for the year under consideration, declared a total income of ₹ 52,06,39,609/-. The AO completed the assessment u/s 143(3) by assessing total income at ₹ 55,84,78,936/- after making various additions and disallowances. The assessee has been consistently following exclusive method of accounting for valuation of closing stock of excluding the CENVAT. However, the AO revalued the closing stock by including CENVAT/MODVAT credit in closing stocks on the ground that non inclusion of CENVAT credit is not only improper but also cannot depict the true and fair picture of taxable profit of the business. Accordingly, the AO added ₹ 390.86 lakhs to the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o give effect u/s 145A, if there is any change in closing stock at the end of the year there must be necessarily of corresponding adjustment in the opening stock of that year and accordingly directed the AO to calculate disallowance/addition after verification. In this connection it is pertinent to mention that the Tribunal in the case of Jindal Iron & Steel Company Ltd. (supra) has held that if unutilized MODVAT credit is added to closing stock, then similar adjustment should be made even in opening stock and purchases. The Tribunal further held that from the plain reading of provisions of section 145A, it is evident that for the purpose of valuation of purchase and sale of goods and inventories on account of tax, duty, cess or fee actuall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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