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| The Tax Publishers2019 TaxPub(DT) 5003 (Mum-Trib) INCOME TAX ACT, 1961
Section 37(1)
On account of deteriortion of various material, including raw-material over a period of time due to wear and tear, assessee would be entitled for inventory written off, however for limited purpose, the issue was restored to AO to verify the fact, if equivalent provision thereof had been made in the books and there was no impact on Profit and Loss Account and then to allow relief to assessee in accordance with law.
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Business expenditure - Allowability - Inventory written off -
Assedssee claimed deduction of inventory written off. AO disallowed deduction. Held: On account of deteriortion of various material, including raw-material over a period of time due to wear and tear, assessee would be entitled for inventory written off, however for limited purpose, the issue was restored to AO to verify the fact, if equivalent provision thereof had been made in the books and there was no impact on profit and loss account and then to allow relief to assessee in accordance with law.
REFERRED :
FAVOUR : In assessee's favour (by way f remand).
A.Y. : 2007-08
INCOME TAX ACT, 1961
Section 40(a)(ia)
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