No addition can be made u/s 145A merely because assessee follows “Exclusive method” for valuation of closing stock:

AO made an addition u/s 145A since assessee had not added VAT paid on goods lying in closing stock at the end of the year while valuing such closing stock. Hon’ble ITAT observed that as per the working of profit based on inclusive method as well as exclusive method furnished by the assessee, there was no impact on the returned income. As per S.145A, assessee is required to follow inclusive method. However, as per guidelines issued by ICAI, assessee is required to follow exclusive method and the said approach has been approved by various Hon’ble High Courts. The effect of following either of the two methods is revenue neutral. Accordingly, the Hon’ble ITAT deleted the impugned addition.

[Satyam Trust vs. ACIT – ITA Nos.3298 & 3299/Ahd/2010]