2023 (1) TMI 963

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of digital electronic telephone exchange equipments etc. Assessee filed its return of income for A.Y. 2003-04 on 27.11.2003 declaring loss of Rs. 16,56,77,673/-. The case of the assessee company was selected for scrutiny and thereafter, assessment was framed under section 143(3) of the I.T. Act, 1961 vide order dated 28/02/2006 and the total loss was determined at Rs. 3,39,67,803/- . 2.2. Aggrieved by the order of the A.O, the assessee carried the matter in appeal before the Ld. CIT(A) who vide order dated 29.09.2017 in Appeal No. 108/17-18-CIT(A)-22 allowed the appeal of the assessee. 3. Aggrieved by the order of the Ld. CIT(A), the Revenue is now in appeal and has raised the following grounds:- 1. The Ld. CIT(A) has erred in law as w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the loss of stock due to obsolete/damage should be allowed as business loss. The submissions of the assessee were not found to acceptable to A.O. For the reason that the closing stock should be valued either at cost price or realisable value; assessee had not discarded those items from the stock and therefore the assessee was not justified in claiming the entire value as loss. The A.O. was further of the view that assessee has only made a provision for writer off stock and it was not an ascertained liability. He accordingly, denied the claim of non-moving inventory to the extent of Rs. 11,32,12,000/- and made its addition. 5. Aggrieved by the order of A.O, assessee carried the matter before the Ld. CIT(A). The Ld. CIT(A) while deciding th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... assessment year in assessee's own case had deleted the addition in the order framed u/s. 153C r.w.s. 153A of the Act. We further find that on identical facts the coordinate bench of the Tribunal while deciding the issue for A.Y. 2003-04 had held that the obsolete inventories were written off by reducing the carrying cost of inventory and the claim was therefore allowed to the assessee. 9. Before us, Revenue did not pointed to any fallacy in the findings of the Ld. CIT(A) nor has pointed to any distinguishing facts of the case in the year under consideration and that of A.Y 2003-04. We therefore find no reason to interfere with the order of the Ld. CIT(A), thus the ground of the Revenue dismissed. 10. Ground no. 2 is with respect to the ....