CIT Vs. JAYANTHILAL SURANA

JUDGEMENT

(1.) THIS appeal is preferred by the revenue challenging the order passed by the Tribunal insofar as the inclusion of the excise duty in the closing stock is concerned.

(2.) THE Tribunal has held that the assessing authority while applying the provisions of Section 145A of the Income Tax Act, 1961 and increasing the value of the closing stock and the same is allowed as deduction as part of the cost of the materials. Consequently, the gross profit as declared by the appellant did not require interference. Therefore, the impugned addition as recommended to the assessee by the Additional Commissioner was deleted.

(3.) IN that view of the matter, the appeal is allowed. The substantial question of law is answered in favour of the revenue and against the assessee. However, the entire matter is remitted back to the assessing authority to consider the contentions of the assessee.