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TMI Blog2014 (5) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/2014 For the reasons stated in the application the delay is condoned. The application is allowed and disposed of. ITA 154/2014 The revenue is aggrieved by an order dated 7.6.2013 of the ITAT and urges that the disallowance made by AO of the provision for Obsolete Stock to the tune of Rs. 65,11,174 /- should have been upheld by the Tribunal. The facts are that the assessee is a wholly-owned s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e stock was destroyed and it was sought to be written off as in the present year. The Tribunal in the impugned order held as follows "9. We have heard the rival submissions of both the parties and have gone through the material available on record. We find that the assessee is continuously following the policy of valuation of closing stock on the basis of net realizable value which is in accordan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 145A of the Act. The case law relied upon by the Ld AR in I.T.A. No.904/Del/2004 decided by the ITAT Delhi Bench 'A' Delhi and further confirmed by the Hon1ble Delhi High Court in I.T.A. No.39/2012 dealt with such a situation where the findings of Tribunal are at para 5 which reads as under:- ''The assessee has been consistently following the method' of accounting o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s lower. The market value here means the value that is acceptable in the market. If an item has become obsolete or slow moving it naturally has a lower market value which the assessee has recognized. The assessee has properly identified such stock and has also followed in accordance with commercially accepted accounting principles of valuation. ln our view, the Ld CIT(A) was correct in law and on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pronouncements relied upon by the Ld AR and on the basis of facts and circumstances of the case, we allow the appeal of assessee.' This Court is of the opinion that the dispute in this case is intensely factual. The Tribunal was guided by the tax auditor's report in para 12(b) which indicated that a reasonable method was adopted for treatment of the obsolete stock. The Tribunal's view is not only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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