Court Rejects Arbitrary 30% Disallowance on Loss Claim for Non-Marketable Expired Goods Due to Inventory Breakage.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Disallowance on account of excess shortage/ breakage to 30% - exceptional inventory loss - the assessee has claimed such loss on account of passing of the of the expiry date of the finished product of the assessee. The value of such goods is as such Nil as having became non-marketable. It is not the case of the revenue that the assessee has derived any revenue from sale of such goods. - Therefore, there is no reason to restrict it at an adhoc figure. - AT....