TOC DISINFECTANTS LTD ( SINCE MERGED WITH HINDUSTAN UNILEVER LTD), MUMBAI V. ACIT 1(3), MUMBAI

ITA 7229/MUM/2008

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2572 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 23-12-2009
• Assessment Year: 2004-2005
• Appeal Filed On: 22-12-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E MUMBAI BEFORE SHRI PRAMOD KUMAR (AM) AND SMT. ASHA VIJAYARAGHAVAN (JM) ITA NO. 7229/MUM/2008 (ASSESSMENT YEAR- 2004-05) TOC DISINFECTANTS LTD. (SINCE MERGED WITH HINDUSTAN LEVER LTD.) MR. AJAY LALVANI, HEAD-TAXATION, HINDUSTAN UNILEVER LTD., 165/166 BACKBAY RECLAMATION, MUMBAI 400 020 PAN NO.:- AAACT 5569 P ACIT 1(3), AAYAKAR BHAVAN, MUMBAI 400 020 (APPELLANT) VS. (RESPONDENT) APPELLANT BY: SHRI NISHANT THAKKAR RESPONDENT BY: SHRI MOHD. USMAN O R D E R PER SMT. ASHA VIJAYARAGHAVAN (JM) THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER DATED 03.10.2008 PASSED BY THE LD. CIT(A)-XXI, MUMB AI FOR THE ASSESSMENT YEAR 2004-05. 2. THE GROUND OF APPEAL RAISED ARE AS FOLLOWS: - 1. THE LEARNED CIT(A) ERRED IN INCREASING THE VALU E OF CLOSING STOCK OF RAW MATERIALS AND PACKING MATERIAL S BY RS.4,07,287/- REPRESENTING UNUTILIZED BALANCE OF CENVAT AS ON 31.03.2004. 3. WE FIND THAT THIS ISSUE IS COVERED BY THE DECISI ON IN THE CASE OF CIT VS M/S. MAHALAXMI GLASS WORKS PVT. LTD. 318 ITR 116 (BOM). SEC. 145A TRIBUNAL UPHOLDS CIT(A) ORDER DIRECTIN G THE AO TO MAKE ADJUSTMENT OF UNUTILIZED MODVAT CREDIT T O THE OPENING STOCK. IT IS HELD THAT THERE IS ANY CH ANGE IN THE CLOSING STOCK THEN THERE IS BOUND TO BE A CORRESPONDING ADJUSTMENT IN THE OPENING STOCK OF NE XT YEAR AND SUCH AN ADJUSTMENT DOES NOT AMOUNT TO DOUBLE BENEFITS IN THIS CASE DELHI HIGH COURT DEC ISION IN THE CASE OF CIT VS MAHAVIR ALUMINUM LTD. HAS BEE N FOLLOWED AND REVENUES APPEAL HAS BEEN DISMISSED. 4. THEREFORE, WE SET ASIDE THIS ISSUE TO THE FILE O F THE ASSESSING OFFICER TO FOLLOW THE DECISION OF THE JURISDICTIONAL HIGH C OURT IN THE CASE OF CIT VS M/S. MAHALAXMI GLASS WORKS PVT. LTD. (SUPRA) AND REDO THE ASSESSMENT. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 23 RD DAY OF DECEMBER, 2009 SD/- SD/- PRAMOD KUMAR ASHA VI JAYARAGHAVAN (ACCOUNTANT MEMBER) (JUDI CIAL MEMBER) MUMBAI, DATED 23 RD DECEMBER, 2009 NEELAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-CONCERNED 4. THE CIT(A)-CONCERNED 5. THE DR E BENCH TRUE COPY BY ORDER ASST. REGISTRAR, I.T.A.T, MUMBAI