https://www.taxtmi.com/caselaws?id=798903 Obsolete inventory may be written down to net realisable value under Accounting Standard-2's lower-of-cost-or-net-realisable-value principle where the valuation is consistently applied and supported by audited accounts, physical verification, item-wise stock records, business discontinuance and auditor certification. A higher value cannot be substituted merely on presumed scrap value, lack of technical certification, non-disclosure to a banker or later stock-summary omissions. Independent valuation evidence, comparable sales, market quotations, scrap valuations or other positive material is required to establish a higher realisable value. Acceptance of the closing stock as succeeding-year opening stock further supports the commercial basis of the write-down. en-us Thu, 10 Sep 2026 00:00:00 +0530 Mon, 14 Sep 2026 08:32:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798903 Obsolete inventory may be written down to net realisable value under Accounting Standard-2's lower-of-cost-or-net-realisable-value principle where the valuation is consistently applied and supported by audited accounts, physical verification, item-wise stock records, business discontinuance and auditor certification. A higher value cannot be substituted merely on presumed scrap value, lack of technical certification, non-disclosure to a banker or later stock-summary omissions. Independent valuation evidence, comparable sales, market quotations, scrap valuations or other positive material is required to establish a higher realisable value. Acceptance of the closing stock as succeeding-year opening stock further supports the commercial basis of the write-down. Case-Laws Income Tax Thu, 10 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798903