Dismissing the appeal of the revenue the Court held that the Tribunal is justified in holding that write off of losses towards stock obsolescence in respect of Laptops and motherboards is held to be allowable as revenue expenditure .Followed CIT v Heredilla Chemicals Ltd (2002 ) 255 ITR 532 (Bom) (HC) (ITA No. 28 of 2014 dt 7 -01 -2020)
CIT v Gigabyte Technology (India) Ltd (2020) 421 ITR 21/ 195 DTR 334/ 273 Taxman 184 ( Bom ) (HC)
S. 37(1) : Business expenditure – Business loss- Write off of losses towards stock obsolescence in respect of Laptops and motherboards -Held to be allowable as revenue expenditure [ S.28(i), 145A ]