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TMI Blog2022 (5) TMI 1530X X X X Extracts X X X X X X X X Extracts X X X X ..... ri S.P.Walimbe- DR ORDER PER: DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the Assessee directed against the order of ld.Commissioner of Income Tax(Appeals)-6, Pune,(in short, the CIT(A) in Appeal No.PN/CIT(A)-V/ACIT Cir-10/103/2016-17dated 30/08/2017 for the Assessment Year 2012-13.The Assessee has raised following grounds of appeal: "1:0 Re: Disallowance of provision for obsolesce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eave to add, alter, amend and/or substitute and/or modify in any manner whatsoever modify all or any of the foregoing grounds of appeal at or before the hearing of the appeal." 2. Brief facts of the case are that the assessee had shown an opening balance towards provision for obsolescence. The Assessing Officer(AO) asked assessee to explain. The assessee claimed that due to technological advance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided is the valuation of the so-called obsolete inventory and whether the provision of obsolete inventory is allowed or not. It was submitted by the Ld.AR that in assessee's own case for AY 2011-12, this Tribunal in appeal no.ITA 2920/Pun/2016 & ITA 499/PUN/2017 has set aside the issue to the file of the AO. 4. On the other hand, the Ld. Departmental Representative(ld.DR) for the Revenue explai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods or spares and the excess provision, if any, was written back in the succeeding year or in the year of sale of obsolete stock, etc. nor was it demonstrated that obsolete stock was valued at lower of cost or net realizable value. In the circumstances, in principle, we hold that the provision for obsolete stock is allowable but it requires to be satisfied that the value of obsolete items of fini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision for obsolete stock to be allowed as deduction subject to Assessing Officer himself satisfying that the valuation is done based on the principle of cost, or market price or net realisable value whichever is less. Accordingly, the Ground No.1 is allowed for the statistical purpose. 6. The Ground No.2 is general in nature, the appellant has not altered, amended any grounds, hence the Ground No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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