In Commissioner Of Income Tax v. Indo Nippon Chemicals

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION Income Tax Application No. 363 of 1999 The Commissioner of Income-tax, Mumbai .. Applicant V/s. Prestress (I) P. Ltd., Mumbai .. Respondent Mr. G. Hariharan for the Applicant None resent for the Respondent CORAM : S. RADHAKRISHNAN & CORAM : S. RADHAKRISHNAN & CORAM : S. RADHAKRISHNAN & J.H. BHATIA, JJ. DATED : 04.07.2005. J.H. BHATIA, JJ. DATED : 04.07.2005. P.C.:- P.C.:- 1. Heard the learned counsel for the Applicant. In the above, the Applicant is seeking to raise the following substantial question of law:- "Whether on the facts and circumstances of the case the ITAT was justified in law in deleting the addition made to the closing stock on account of the element of Modvat embedded in it?" 2. We have perused the judgment of the Supreme Court in Commissioner of Income tax v. Indo Nippon Chemicals Co. Ltd. (2003) Vol. 261 ITR 275 Supreme Court has clearly held that Modvat credit available to assessee for manufacture of the goods with duty paid raw materials can not be treated as income liable to be taxed. Under these circumstances, we do not find any substantial question of law involved in the above, the Application stands dismissed. (S. RADHAKRISHNAN, J.) (S. RADHAKRISHNAN, J.) (J.H. BHATIA, J.) (J.H. BHATIA, J.)