Case Law Details
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. The assessee has admittedly set off its service tax payable to the extent of 50% of the above excise duty. It thereafter has carried forward the remaining amount in the next year. We take into account all these facts to opine that there is no income element embedded therein since the assessee is not entitled to get the same refunded from the government since the same has to be utilized only against the service tax payable. We therefore express our agreement with learned CIT(A)’s conclusion that the above excise duty cannot be added in closing stock value since the assessee runs its cars on hire. We accordingly find no reason to accept Revenue’s sole substantive grievance. The CIT(A)’s finding under challenge stand confirmed.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This Revenue’s appeal for assessment year 2008-09 arises against the CIT(A)-VIII, Ahmedabad’s order dated 25.08.2014 in case no. CIT(A)- VIII/DCIT/Cir.4/15/13-14, reversing Assessing Officer’s action making addition of Rs. 1,07,19,753/- in respect of unutilized CENVAT credit, in proceedings u/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961; in short “the Act”.
Heard both the parties. Case file perused.
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