TMI Blog2022 (5) TMI 1530X X X X Extracts X X X X X X X X Extracts X X X X ..... s less. Accordingly, the Ground No.1 is allowed for the statistical purpose. - ITA No.2654/PUN/2017 - - - Dated:- 12-5-2022 - SHRI PARTHA SARATHI CHAUDHURY, JM AND DR. DIPAK P. RIPOTE, AM For the Assessee : Shri Ketan Ved- AR For the Revenue : Shri 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 obsolescence of inventory: 1:1 The Commissioner of Income Tax (Appeals) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icular items have market value nil or half of the cost price, the value of inventory cannot be reduced. The AO after an elaborate discussion made addition of Rs.74,00,000/-. Aggrieved by the same the assessee filed an appeal before the Ld.Commissioner of Income Tax (appeal). The Ld.Commissioner of Income Tax (appeal) upheld the addition. aggrieved by the same the appellant assessee filed appeal before this Tribunal. 3 The only issue to be decided 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olete stock be allowed as deduction subject to satisfying himself that the valuation is done based on the principle that at cost or market price or net realizable value, whichever is less. Thus, this ground of appeal is allowed for statistical purposes. Unquote . The Hon ble ITAT Pune has followed the Hon ble Bombay High Court s decision in the case of Alfa Laval India vs. DCIT 266 ITR 418. 5.2 As mentioned earlier the issue involved is same. Hence, respectfully following the order of Hon ble ITAT(supra) we remand the issue to the file of the Assessing Officer with a direction that the provision for obsolete stock to be allowed as deduction subject to Assessing Officer himself satisfying that the valuation is done based on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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