https://www.taxtmi.com/caselaws?id=117813 Deduction for loss on obsolete machinery under the Indian Income-tax Act, 1922 requires the machinery to have been used during the relevant accounting year; a claim cannot rest on passive use where no factual basis was raised before lower authorities. Loss on machinery that had ceased to be used before the accounting period was therefore not allowable. Stores and spares constitute stock-in-trade, and closing stock may be revalued from cost to realisable value where the change is bona fide, consistently applied, and reflects real value. In the absence of findings questioning bona fides or the revised valuation, the resulting stock-revaluation loss was allowable. en-us Thu, 01 Aug 1963 00:00:00 +0530 Tue, 31 Jul 2012 23:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=117813 Deduction for loss on obsolete machinery under the Indian Income-tax Act, 1922 requires the machinery to have been used during the relevant accounting year; a claim cannot rest on passive use where no factual basis was raised before lower authorities. Loss on machinery that had ceased to be used before the accounting period was therefore not allowable. Stores and spares constitute stock-in-trade, and closing stock may be revalued from cost to realisable value where the change is bona fide, consistently applied, and reflects real value. In the absence of findings questioning bona fides or the revised valuation, the resulting stock-revaluation loss was allowable. Case-Laws Income Tax Thu, 01 Aug 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=117813