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2020 (4) TMI 330 - AT - Income TaxDisallowance of obsolete inventory written off - no justification was given for inventories becoming obsolete and also believes that the same should have been written off gradually - HELD THAT:- A perusal of the record would indicate that basically the assessee has written off its inventory on the ground that such inventory has become obsolete; but when the Assessing officer has enquired to submit the supporting details, what is the nature of inventory, what is the shelf-life, how it became obsolete, then nothing was produced. In other words, the assessee should produce the details of inventory, year of manufacturing/purchase, how it is to be used and how it can be construed that it has no value. Since the assessee failed to give any such details; therefore, the Assessing Officer has disallowed it. There is no disparity on facts from Assessment Year 2005-06 to this year when similar disallowance was upheld upto the Tribunal in the findings extracted supra. Therefore, we do not find any merits in this ground of appeal; it is rejected. Disallowance of prior period expense - HELD THAT:- Case of the assessee is that certain expenditures were crystallized during this year and, therefore, deduction of such expenditures deserves to be allowed to the assessee. The learned First Appellate Authority has recorded a categorical finding that these expenses have not been crystallized or pertaining to this year and they cannot be allowed in this year. After going through the well reasoned findings of the learned CIT(A), we do not find any error in it. Hence, this ground of appeal of the assessee is also rejected.
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