What did the Tribunal hold?

The Tribunal observed that similar issues for earlier assessment years were remitted to the AO for fresh adjudication. Therefore, the Tribunal set aside the impugned order and restored the matter to the AO for fresh decision.

The assessee claimed a deduction for obsolete stock written off. The Assessing Officer disallowed the claim due to the assessee's inability to furnish supporting documents like certificates from excise authorities and Chartered Accountants.

What were the issues?

Whether the disallowance of deduction for obsolete stock written off is justified without proper substantiation. The need for fresh adjudication based on precedents from earlier years.

M/S. Vishay Components India… vs ACIT | ITAT Pune 2019

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI R.S. SYAL & SHRI VIKAS AWASTHY

For Appellant: Shri Pramod Jadhav

For Respondent: Shri M.K. Verma

आदेश / ORDER PER R.S.SYAL, VP : This appeal by the assessee arises out of the order passed by the CIT(A)-5, Pune on 22-12-2017 in relation to the Assessment Year 2009-10.

The only issue raised in this appeal is against confirmation of disallowance of deduction claimed by the

2 ITA No.726/PUN/2018 M/s. Vishay Components India Pvt. Ltd.,

assessee in relation to obsolete stock written off under

Domestic Tariff Area (DTA) unit.

Briefly stated, the facts of the case are that the assessee

claimed write off of obsolete stock of Rs.20,11,599/- (raw

material) and Rs.10,70,217 (finished goods). On being called

upon to substantiate the claim of deduction, the assessee

submitted that provision for obsolete stock was made which

was actually added back and deduction was claimed only in

respect of actual obsolete stock written off. The AO required

the assessee to produce the following documents to justify its

claim :

a. Certificate from Excise authority that such stock is not usable and hence written off. b. Certificate from Chartered Accountant that he had inspected the stock and found that the same was not usable. c. Whether product of such raw material has been discontinued and there is no demand of such product in the market. d. Whether sale/stock of such written off material have been accounted in the excise register and scrap for the same are entered in the excise register.

Since the assessee could not furnish such details in

entirely, the AO made disallowance of Rs.30,81,816/-. The ld.

CIT(A) sustained the same.

Having heard both the sides and perused the relevant

material on record, it is observed that similar issue came up for

3 ITA No.726/PUN/2018 M/s. Vishay Components India Pvt. Ltd.,

consideration before the Tribunal in the appeals of the assessee

for earlier years. Vide order dated

10-02-1017 for the assessment year 2007-08, the Tribunal in

ITA No.1712/PUN/2011 has remitted identical matter to the

AO for fresh adjudication. Similar view has been taken by the

Tribunal for the assessment year 2006-07, a copy of which has

been placed on page 188 onwards of the paper book. In view

of the foregoing precedent, we are satisfied that the ends of

justice would meet adequately if the impugned order on this

issue is set-aside and the matter is restored to the file of AO.

We order accordingly and direct him to decide this issue in the

light of the directions given by the Tribunal in the earlier

assessment years as aforestated.

In the result, the appeal is allowed for statistical

purposes. Order pronounced in the Open Court on 09th January, 2019.

Sd/- Sd/- (VIKAS AWASTHY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 09th January, 2019 सतीश

4 ITA No.726/PUN/2018 M/s. Vishay Components India Pvt. Ltd.,

आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to: अ�ेिषत आदेश आदेश आदेश 1. अपीलाथ� / The Appellant; 2. ��यथ� / The Respondent; 3. आयकर आयु�(अपील) / The CIT (Appeals)-5, Pune The Pr.CIT-4, Pune 4. िवभागीय �ितिनिध, आयकर अपीलीय 5. अिधकरण, पुणे “SMC” / DR ‘SMC’, ITAT, Pune; 6. गाड% फाईल / Guard file. // True copy //

आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार आदेशानुसार

// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

ITA No.726/PUN/2018 M/s. Vishay Components India Pvt. Ltd.,

Date 1. Draft dictated on 09-01-2019 Sr.PS 2. Draft placed before author 09-01-2019 Sr.PS 3. Draft proposed & placed JM before the second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.

M/S. VISHAY COMPONENTS INDIA PVT.LTD,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE -13, PUNE

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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