Section 145A Cannot Be Used to Inflate Profits: ₹38.26 Lakh Addition Deleted

MSL Driveline Systems Limited Vs ACIT (ITAT Mumbai) Section 145A Is Not a Profit-Making Tool: ITAT Mumbai Deletes ₹38.26 Lakh MODVAT / CENVAT Addition  Mumbai ITAT allowed the Assessee’s appeal and deleted the addition of ₹38,26,165 made u/s 145A on account of MODVAT / CENVAT credit allegedly relatable to inventory. The Tribunal noted that the AO had mechanically invoked section 145A and added MODVAT credit to closing stock without making corresponding adjustments and without demonstrating any real impact on profits. The Assessee had consistently followed the exclusive method of account...