2014 (5) TMI 148

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....ani Kiyala, Advs. ORDER CM 6480/2014 For the reasons stated in the application the delay is condoned. The application is allowed and disposed of. ITA 154/2014 The revenue is aggrieved by an order dated 7.6.2013 of the ITAT and urges that the disallowance made by AO of the provision for Obsolete Stock to the tune of Rs. 65,11,174 /- should have been upheld by the Tribunal. The fac....

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....nt of such stock; for some previous years the stock was destroyed and it was sought to be written off as in the present year. The Tribunal in the impugned order held as follows "9. We have heard the rival submissions of both the parties and have gone through the material available on record. We find that the assessee is continuously following the policy of valuation of closing stock on the basi....

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.... net realizable value and was in accordance with provisions of section 145A of the Act. The case law relied upon by the Ld AR in I.T.A. No.904/Del/2004 decided by the ITAT Delhi Bench 'A' Delhi and further confirmed by the Hon1ble Delhi High Court in I.T.A. No.39/2012 dealt with such a situation where the findings of Tribunal are at para 5 which reads as under:- ''The assessee has been ....

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....e of valuation is the cost of market value whichever is lower. The market value here means the value that is acceptable in the market. If an item has become obsolete or slow moving it naturally has a lower market value which the assessee has recognized. The assessee has properly identified such stock and has also followed in accordance with commercially accepted accounting principles of valuation.....