THE DCIT, CIRCLE1,, AHMEDABAD vs. M/S. AMBUJA INTERMEDIATES LTD.,, AHMEDABAD

When the matter was called for hearing, the Ld.DR submitted that the solitary reason for setting aside the assessment order passed under s.143(3) of the Act dated 31/11/2010 by holding the same to be erroneous and prejudicial to the interest of the Revenue was on account of alleged failure of the Assessing Officer (AO) to examine the taxability of excise credits for the purpose of valuation of closing stock having regard to s.145A of the Act. The Ld.AR in this context that the issue was earlier examined by the AO at the time of assessment where the ‘exclusive method’ followed by the assessee was found to be tax neutral. The Ld.AR thereafter submitted that pursuant to order under s.263 of the Act, the assessment was reframed making certain additions under s.145A which was deleted by the CIT(A) in he first appeal. The revenue, in turn, appealed against the order of the CIT before Coordinate Bench of ITAT in quantum proceedings. The Coordinate Bench in ITA No.599/Ahd/2015 oder dated 12/02/2018has not found any merit in the

The Ld.DR relied upon the order of the CIT.

We have heard the rival submissions. The challenge to the validity of order passed under s.263 of the Act by the designated authority (the CIT) in the instant case is rendered infructuous in view of the fact that the assessee is not aggrieved any more owing to relief granted by the appellate authorities on the issues raised by the AO in assessment framed in pursuance of the revisional order. Thus, the captioned appeal of the assessee is, in effect, has faded into redundancy. Therefore, we do not consider it necessary to examine the correctness of action of CIT in the present appeal. However, it shall be open to the assessee to seek restoration of the present appeal in accordance with law if circumstances warrant for doing so, in the event of any prejudice perceived by the assessee.

The Ld.AR for the assessee in the captioned Revenue’s appeal submitted at the outset that the identical issue namely correctness of unutilized CENVAT credits under s.145A of the Act is involved in the present appeal also. In this regard, the Ld.AR submitted that the quantum appeal of the Revenue is required to be dismissed in view of the decision of the Coordinate Bench in assessee’s own case in ITA No.599/Ahd/2015 order dated 12/02/2018 concerning AY 2008-09.

We do not find merit in the appeal of the revenue owing to the fact that issue towards correctness of additions on account of unutilized MODVAT credits under s.145A of the Act is already covered in favour of assessee assessee’s own case relevant to AY 2008-09.

In the combined result, appeal of the assessee in ITA No.1502/Ahd/2013 and appeal of the Revenue in ITA No.586/Ahd/2014 are dismissed. This Order pronounced in Open Court on 01/ 05 /2018