https://www.taxtmi.com/caselaws?id=59177 A bona fide and consistently followed method of valuing obsolete closing stock at net realisable value, rather than cost, was recognised as acceptable where it was adopted to reflect true profits. The Tribunal noted that the assessee had identified obsolete items for commercial reasons such as design changes, quality improvements and discontinuation of models, and that the Revenue had shown no better scientific method. The timing of the inventory, prepared before year-end as a practical accounting measure, did not by itself impair genuineness or justify rejection of the write-off. The obsolete stock addition was therefore deleted. en-us Mon, 14 Oct 1985 00:00:00 +0530 Sat, 25 Dec 2010 13:47:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59177 A bona fide and consistently followed method of valuing obsolete closing stock at net realisable value, rather than cost, was recognised as acceptable where it was adopted to reflect true profits. The Tribunal noted that the assessee had identified obsolete items for commercial reasons such as design changes, quality improvements and discontinuation of models, and that the Revenue had shown no better scientific method. The timing of the inventory, prepared before year-end as a practical accounting measure, did not by itself impair genuineness or justify rejection of the write-off. The obsolete stock addition was therefore deleted. Case-Laws Income Tax Mon, 14 Oct 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59177