Addition for Unutilized Cenvat Credit in absence of income element is ubjustified

DCIT Vs. Infinium Motors Pvt. Ltd. (ITAT Ahmedabad) There is no dispute that the assessee had paid the impugned excise duty on motor cars purchased for its hiring business. It reduced the relevant excise duty on the said purchases from the total cost of the motor cars. This followed its depreciation claim on the consequential reduced cost thereof. The assessee thereafter treated the above excise duty amount as an advance in its balance sheet’s asset side. The Revenue is fair enough in not disputing the fact that it is already entitled to claim 50% of the above excise duty as CENVAT credit. T...