Obsolete Inventory Write-Off Limited to 5% Due to Lack of Evidence; Assessee Must Prove Stock Obsolescence.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Allowability of write off of obsolete and non-usable inventory which is 10% of the total inventory - there can be no denial that assessee is entitled to claim loss towards obsolete stock in a given year, it is also the corresponding duty of the assessee to prove the existence of such obsolete material by direct or circumstantial evidences - the assessee has totally failed in its corresponding duties - disallowance restricted to 5%....