CIT v. Diamond Dye Chem Limited in ITA

L'OREAL INDIA P. LTD,MUMBAI vs. ASST CIT CIR 6(3), MUMBAI

In the result, appeal by the assessee is partly allowed in the terms aforesaid

Bench: Vikas Awasthy & Shri N.K.Pradhanआअसं. 130/मुं/2013 ("न.व. 2007-08) It(Tp)A No.130/Mum/2013(A.Y.2007-08) M/S. L’Oreal India Pvt. Ltd. A-Wing, 8Th Floor, Marathon Futurex, N.M. Joshi Marg, Lower Parel, Mumbai 400 013 Pan: Aaacl0738K ...... अपीलाथ" /Appellant बनाम Vs. The Asstt. Commissioner Of Income Tax, Circle – 6(3), Aaykar Bhavan, M.K.Road, Mumbai 400 020 ..... ""तवाद"/Respondent

…owed or inclusive method of accounting is applied there would be no adjustment required in respect of CENVAT credit. To support his submissions, the ld. Authorized Representative placed reliance on the following decisions: (i) CIT vs. Diamond Dye Chem. Ltd., 396 ITR 536(Bom) (ii) Kansai Nerolac Paints Ltd. vs. ACIT in ITA No.4175 of 2010 & ITA No.9184 of 2010 decided on 19/03/2018. 9.1. The ld. AR further submitted that in the preceding assessment years starting from AY 2002-03 to 2006-07, the Assessing Officer has made disallowance under Section 145A of the Act for similar reasons and the CIT(A) has been consi…

MERCK LTD,MUMBAI vs. ASST CIT CIR 6(3), MUMBAI

In the result, appeal is partly allowed

Bench: Shri Pramod Kumar () & Shri Saktijit Dey()

…in subsequent assessment years up to Assessment Year 2009-10. She also drew our attention to the relevant assessment orders. Further, in support of her contention, she relied upon the decision of Hon’ble Bombay High Court in case of CIT vs Diamond Dyechem Ltd 396 ITR 536 (Bom). 17. The learned Departmental Representative relied upon the observations of the departmental authorities. However, he submitted that the issue may be restored back to the Assessing Officer. 18. We have considered rival submissions and perused the materials on record. It is a fact that while deciding identical issue in assessee’s own case f…

GODREJ INDUSTRIES LTD,MUMBAI vs. DCIT RG 10(2), MUMBAI

In the result, the appeal of assessee is partly allowed and the appeal of Revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am Aayakr Apila Sam./ Ita No. 1823/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2011-12) The Dy. Commissioner Of M/S. Godrej Industries Ltd., Income Tax-14(1)(2), Phirojshanagar, Eastern Mumbai Vs. Express Highway, Vikhroli (East), Mumbai .. (Apilaaqai- / Appellant) (P`%Yaqaai-/ Respondent) स्थायीलेखा िं./Pan No.Aacg2953R Aayakr Apila Sam./ Ita No. 1858/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2011-12) Godrej Industries Ltd., The Dy. Commissioner Of C/O. Kalyaniwalla & Income Tax, Mistry Llp, Range-10(2), Vs. 2Nd Floor, Esplanade Now, The Asst. Commissioner House,29, Hazarimal Of Income Tax, Range-14(1)(2) Somani Marg,Fort,Mumbai Mumbai (Apilaaqai- / Appellant) .. (P`%Yaqaai-/ Respondent) अपीलाथीकीओर े/ Appellant By : Shri Rajendra Prasad, Dr प्रत्यथीकीओर े/ Respondent By : Shri F.V. Irani, Ar ुनवाईकीतारीख/ Date Of Hearing: 09.04.2019 घोषणाकीतारीख/ Date Of Pronouncement : 05.07.2019

…aced by cenvat in the valuation of closing stock.) Following the judgment of the Supreme Court in the case of Indo Nippon Chemicals Co Ltd (supra), a Division Bench of this Court in the case of Commissioner of Income Tax v/s P a g e | 13 Diamond Dye Chem Ltd 396 ITR 536 dismissed the Revenue's Appeal making following observations: - “We have considered the submissions. It is not disputed that the assessee was liable to excise duty. The assessee got credit in the excise duty already paid on the raw materials purchased by it and utilized in the manufacturing of excisable goods. The assessee was adopting the exclu…

DCIT 14(1)(2), MUMBAI vs. GODREJ INDUSTRIES LTD, MUMBAI

In the result, the appeal of assessee is partly allowed and the appeal of Revenue is dismissed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am Aayakr Apila Sam./ Ita No. 1823/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2011-12) The Dy. Commissioner Of M/S. Godrej Industries Ltd., Income Tax-14(1)(2), Phirojshanagar, Eastern Mumbai Vs. Express Highway, Vikhroli (East), Mumbai .. (Apilaaqai- / Appellant) (P`%Yaqaai-/ Respondent) स्थायीलेखा िं./Pan No.Aacg2953R Aayakr Apila Sam./ Ita No. 1858/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2011-12) Godrej Industries Ltd., The Dy. Commissioner Of C/O. Kalyaniwalla & Income Tax, Mistry Llp, Range-10(2), Vs. 2Nd Floor, Esplanade Now, The Asst. Commissioner House,29, Hazarimal Of Income Tax, Range-14(1)(2) Somani Marg,Fort,Mumbai Mumbai (Apilaaqai- / Appellant) .. (P`%Yaqaai-/ Respondent) अपीलाथीकीओर े/ Appellant By : Shri Rajendra Prasad, Dr प्रत्यथीकीओर े/ Respondent By : Shri F.V. Irani, Ar ुनवाईकीतारीख/ Date Of Hearing: 09.04.2019 घोषणाकीतारीख/ Date Of Pronouncement : 05.07.2019

…aced by cenvat in the valuation of closing stock.) Following the judgment of the Supreme Court in the case of Indo Nippon Chemicals Co Ltd (supra), a Division Bench of this Court in the case of Commissioner of Income Tax v/s P a g e | 13 Diamond Dye Chem Ltd 396 ITR 536 dismissed the Revenue's Appeal making following observations: - “We have considered the submissions. It is not disputed that the assessee was liable to excise duty. The assessee got credit in the excise duty already paid on the raw materials purchased by it and utilized in the manufacturing of excisable goods. The assessee was adopting the exclu…

KANSAI NEROLAC PAINTS LTD,MUMBAI vs. ADDL CIT RG 6(2), MUMBAI

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.6789/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ Dcit Circle -6(2) M/S. Kansai Nerolac Paints Ltd., R.No. 563, Aayakar Bhavan, Nerolac House, K.G. Marg, M.K. Road, Churchgate, V. Lower Parel, Mumbai-400020 Mumbai-400013 स्थायी ऱेखा सं./ Pan :Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. आयकर अपीऱ सं./I.T.A. No.7196/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ M/S. Kansai Nerolac Paints Addl. Cit Circle -6(2) Ltd., R.No. 669, Nerolac House, K.G. Marg, Aayakar Bhavan, V. Lower Parel, Mumbai 400013 M.K. Road, Mumbai- 400020 स्थायी ऱेखा सं./ Pan : Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

…essee is contending that it is following exclusive method of accounting while accounting for cenvat credits. Our attention was drawn to the decision of Hon‟ble Bombay High Court in the case of CIT v. Diamond Dye Chem Limited in ITA no. 146 of 2015 reported in 396 ITR 536(Bom.) . 20. The Ld. DR on the other hand relied upon the appellate order of the Ld. CIT(A). 22. We have considered rival contentions and perused the material on record. We have observed that the assessee is following exclusive method of accounting for valuing closing stock wherein unutilised MODVAT/Cenvat Credit is not added to the value of clo…

DCIT 6(2), MUMBAI vs. KANSAI NEROLAC PAINTS LTD, MUMBAI

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.6789/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ Dcit Circle -6(2) M/S. Kansai Nerolac Paints Ltd., R.No. 563, Aayakar Bhavan, Nerolac House, K.G. Marg, M.K. Road, Churchgate, V. Lower Parel, Mumbai-400020 Mumbai-400013 स्थायी ऱेखा सं./ Pan :Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. आयकर अपीऱ सं./I.T.A. No.7196/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ M/S. Kansai Nerolac Paints Addl. Cit Circle -6(2) Ltd., R.No. 669, Nerolac House, K.G. Marg, Aayakar Bhavan, V. Lower Parel, Mumbai 400013 M.K. Road, Mumbai- 400020 स्थायी ऱेखा सं./ Pan : Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

…essee is contending that it is following exclusive method of accounting while accounting for cenvat credits. Our attention was drawn to the decision of Hon‟ble Bombay High Court in the case of CIT v. Diamond Dye Chem Limited in ITA no. 146 of 2015 reported in 396 ITR 536(Bom.) . 20. The Ld. DR on the other hand relied upon the appellate order of the Ld. CIT(A). 22. We have considered rival contentions and perused the material on record. We have observed that the assessee is following exclusive method of accounting for valuing closing stock wherein unutilised MODVAT/Cenvat Credit is not added to the value of clo…