Dismissing the appeal of the revenue the Court held that the obsolete stock which was not disposed of or sold was allowable as expenditure. Order of Tribunal is affirmed.
Followed CIT v Heredilla Chemicals Ltd (2002 ) 255 ITR 532 (Bom) (HC)
CIT v. Gigabyte Technology (India) Ltd. (2020) 421 ITR 21 /195 DTR 334/ 273 Taxman 184 (Bom)(HC)
S.28(i) :Business loss – Business expenditure — Obsolescence allowance — Write of off obsolete stock – Allowable as business loss .[ S. 37(1) 145A]