If assessee fails to include modvat credit in closing stock value, AO not right in making additions on this ground U/s. 145A

DCIT, Mumbai Vs M/s Axis Electrical Components (I) Pvt Ltd (ITAT Mumbai)–  if adjustments had to be made to the closing stock, in the same token value of purchase/sale of goods and inventory had to be further adjusted to include the amount of tax, duty, cess etc. and even opening stock has to be recomputed in terms of section 145A of the Act, in which event there is no change in the end result and no case was made out by the Assessing Officer to make an addition. Even u/s. 43B of the Act so long as taxes were paid before the due date of filing of return of income addition cannot be made.

IN THE INCOME TAX APPELLATE TRIBUNAL

MUMBAI BENCH “G”

I.T.A.No. 4577/Mum/09 (Assessment year: 2006- 07)

DCIT Vs. M/s. Axis Electrical Components (I) P. Ltd.

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