https://www.taxtmi.com/caselaws?id=445494 ITAT Bangalore ruled on three issues for a manufacturing company. For obsolete stock provision, the tribunal held provisions are allowable in principle but remitted the matter to AO to verify proper valuation at cost or market price, whichever is less, and prevent double deduction. Regarding scientific research expenditure under section 35(2AB), uncertified amount of Rs. 7.94 crores was allowed as business deduction under section 37. For liquidity damages, the tribunal upheld CIT(A)'s decision allowing compensation for breach of contractual obligation as ordinary business expense, distinguishing it from penalties for law infraction. en-us Wed, 19 Jul 2023 00:00:00 +0530 Wed, 08 Nov 2023 13:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445494 ITAT Bangalore ruled on three issues for a manufacturing company. For obsolete stock provision, the tribunal held provisions are allowable in principle but remitted the matter to AO to verify proper valuation at cost or market price, whichever is less, and prevent double deduction. Regarding scientific research expenditure under section 35(2AB), uncertified amount of Rs. 7.94 crores was allowed as business deduction under section 37. For liquidity damages, the tribunal upheld CIT(A)'s decision allowing compensation for breach of contractual obligation as ordinary business expense, distinguishing it from penalties for law infraction. Case-Laws Income Tax Wed, 19 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445494