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TMI Blog2022 (12) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessee in ground No. 3 and 4 of appeal is: (i) Disallowance of provision for slow moving obsolete stock : Rs. 96,07,495/- (ii) Disallowance of publicity expenses, wrongly considered as bad debts and advances written off by the Assessing Officer. : Rs.5,97,35,213/- 3. Shri Ruturaj H. Gurjar appearing on behalf of the assessee submits that the assessee is engaged in the business of producing, acquiring, marketing and distribution of music cassettes & compact discs in India and overseas. The recorded music and compact discs are held as stock-in-trade. Since, the shelf life of cassettes and compact discs is very short, they become obsolete very fast. Accordingly, a provision for slow and obsolete moving items is made at the closing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Assessing Officer has erred in holding that the assessee has written off bad debts and advances Rs.5,97,35,213/-. The amount mentioned by the Assessing Officer in the assessment order pertains to publicity expenses claimed by the assessee. During assessment proceedings the assessee had categorically explained that there are no bad debts written off during the year. The ld. Authorized Representative of the assessee referred to the submissions dated 20/01/2014 made by the assessee before the Assessing Officer at page 24 to 26 of the Paper Book. The ld. Authorized Representative of the assessee pointed that at Sl.No.22 of the reply against details of bad debts and advances written off the assessee has mentioned "Nil". 3.2 Aggrieved agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of provision for slow moving and obsolete inventories. It is true that the principle of resjudicata does not apply in Income Tax proceedings, but at the same time rule of consistency cannot be ignored especially when the accounting method followed by assessee is in accordance with approved Accounting Standards. The Revenue has not brought on record any material to show the reasons for deviation in not accepting provision for slow moving and obsolete inventories in the impugned assessment year. In the case of CIT vs. Santram Mangatram (supra) the Hon'ble High Court has held that where from the inception of its business, the assessee had continuously adopted the same method of valuation of closing stock and no objection was raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edule-17 at page 15 of the paper book shows that against bad debts and advances written off no amount is mentioned either in the year ended 31/03/2011 or for the year ended 31/03/2010. The Assessing Officer has disallowed bad debts and advances written off to the extent of Rs.5,97,35,213/-. The aforesaid amount is mentioned in Schedule -17 against the "Publicity Expenses". The Assessing Officer patently erred in mentioning the amount of "Publicity Expenses" against "Bad Debts and advances written off ". The disallowance has been made by the Assessing Officer on wrong appreciation of facts. We further observe that the assessee's submissions dated 20/01/2014 made before the Assessing Officer had categorically mentioned "Nil" against Details o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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