(Per :
HONOURABLE MS. JUSTICE HARSHA DEVANI)
1. In this appeal under section 260A of the Income Tax Act, 1961 (the Act), the appellant revenue has challenged order dated 21st April, 2006 made by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C' (the Tribunal) in ITA No.2894/Ahd/2002 for assessment year 1998-99.
2. While admitting the appeal, this Court had, vide order dated 20th November, 2007, formulated the following substantial question of law:-
"Whether in the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the excise duty should not be taken into account for valuation of the closing stock?"
3. Heard Mr. M.R. Bhatt, learned senior advocate appearing on behalf of the appellant and Mr. R.K. Patel, learned advocate appearing on behalf of the respondent.
4. Mr.
R.K. Patel, learned advocate appearing on behalf of the respondent has invited attention to a decision of this Court in the case of Assistant Commissioner of Income-Tax vs. Narmada Chematur Petrochemicals Ltd., (2010) 327 ITR 369 (Guj.) to submit that the controversy involved in the present case stands concluded in favour of the assessee by the said decision. In the circumstances, it is not necessary to set out the facts and contentions in detail.
5. In the case of Assistant Commissioner of Income-Tax vs. Narmada Chematur Petrochemicals Ltd. (supra), this Court, after discussing the issue at length, has held that excise duty is required to be excluded at the time of valuation of the closing stock on finished goods at the end of the accounting period. In the circumstances, the controversy involved in the present case is squarely covered by the aforesaid decision. Hence, for the reasons stated in the decision of this Court in Assistant Commissioner of Income-Tax vs. Narmada Chematur Petrochemicals Ltd. (supra), the question is answered accordingly. The Tribunal was justified in law in holding that the excise duty should not be taken into account for valuation of the closing stock. The appeal is accordingly dismissed with no order as to costs.
( Harsha Devani, J. ) ( B.M. Trivedi, J. ) hki Top