Assessee had charged a sum of Rs. 7.78 lakhs to the profit and loss account on account of provisions for losses arising from impairment in value of assets.  Assessee submitted that after getting these assets valued from Government Approved Valuer, losses towards impairment of assets were claimed in the profit and loss account in accordance with Accounting standard AS-28 issued by ICAI.  According to Assessing Officer, said the loss was not allowable as there was no provision in the Act to allow any loss on account of impairment in the value of fixed assets unless the same were destroyed, discarded or sold and thus the claim of the assessee was rejected by Assessing Officer and corresponding addition was made to income.  On appeal, Commissioner(Appeals) allowed the claim of the assessee by referring to AS-28. On appeal, the Tribunal held that section 41(2) deals with charging of income in the year in which it is sold, discarded, demolished or destroyed, but not case where the assessee continues to hold fixed assets and loss or impairment in value of the asset is calculated on registered valuer report. The provision of section 41(2) is not applicable.  (AY. 2011-12)