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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 ..... ut a reasonable one - The assessee has been found to have followed the accounting standard – thus, no substantial question of law arises for consideration – Decided against Revenue. - ITA 154/2014 - - - Dated:- 15-4-2014 - S. Ravindra Bhat And R. V. Easwar,JJ. For the Appellant : Ms. Suruchi Aggarwal, sr. standing counsel For the Respondent : Mr. Rishabh Kapoor and Mr. Rani Kiyala, Advs. ORDER CM 6480/2014 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 /- shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scribed under section 145A of the Act. 12(a) of the same audit report refers to A-4 attached with Schedule-13 of audited accounts which reads as under:- Inventories Finished goods are valued at lower of cost and net realizable value. Cost is determined on weighted average base cost includes all the incidental charges which are necessary to bring inventories to its present location and condition. From the above Notes to Accounts and Tax Audit report it can be said that valuation of inventories was being done at lower of cost or net realizable value and was in accordance with provisions 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer which was based not taking into consideration the hard realities of assessee's business. The addition in our view is properly deleted and we decline to interfere. 10. The Ld DR has mainly objected to the reliance of Ld AR on the case law because of the difference in items dealt by the assessee and in case law relied upon by Ld AR. Though there is difference in items but the principle of valuation of stock remains the same. The assessee instead of taking the net realizable value for valuation of closing stock took the cost price of obsolete item and created a provision for difference in cost price and market value and debited the same to PandL Account, the effect of which is same. Therefore keeping in view the judicial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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