Case Law Details
Ms. Adani Gas Ltd. Vs DCIT (ITAT Ahmedabad)
Conclusion: Assessee was justified in following exclusive method of accounting for valuation of closing stock as entire exercise was tax neutral and there was no impact on the profitability of assessee due to method of accounting followed.
Held: While it was a case of Revenue that the element of excise duty/CENVAT etc. would represent part of the closing stock of assessee in terms of Section 145A, it is the case of the assessee on the other hand that Section 145A had no application to the facts of the case. It was further case of assessee that assessee followed exclusive method of accounting for valuation of inventory and therefore, entire exercise would be tax neutral. CIT(A) had examined the issue on facts and binding judicial precedents and concluded the issue in favour of assessee. In the absence of any impact on the profitability of the assessee per se due to method of accounting followed, there was no error in the conclusion drawn by CIT(A).
FULL TEXT OF THE ITAT JUDGMENT
The captioned bunch of appeals concerning AYs 2009-10 & 2010-11 has been filed by the Revenue against the order of the CIT(A)-III, Ahmedabad (‘CIT(A)’ in short), dated 13.12.2013 arising in the assessment order dated 28.12.2011 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act). The assessee has also moved cross objection captioned above in the Revenue’s appeal. Likewise, the assessee as well as the Revenue have filed cross appeals against the order of the CIT(A)-1, Ahmedabad dated 15.05.2015 arising in the assessment order dated 30.03.2013 passed by the AO under s.143(3) of the Act concerning AY 2010-11.
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