Case Law Details
Narain Jewels International Ltd. Vs DCIT (ITAT Delhi)
Conclusion: Since the stock sold was very old, it was not strange to sell them at reduced rate and AO had no authority to compel assessee as to at which rate, assessee had to make sale of its goods, hence, deduction of trading loss on sale of stock was allowable.
Held: Assessee had stopped his business since long back and during the year, assessee sold some goods which were lying with him. AO disallowed deduction of trading loss on sale of stock on the ground that assessee had sold stock at a very low rate. It was noted that the financial statements had been accepted by AO. When the stock sold was very old, it was not strange to sell them at reduced rate. AO had no authority to compel assessee as to at which rate, an assessee had to make sale of his goods hence, deduction of trading loss on sale of stock was allowable.
FULL TEXT OF THE ITAT JUDGMENT
This is an appeal filed by the assessee against the order of ld. CIT(A)-6, Delhi dated 22.12.2014 for the assessment year 2006-07 on the following grounds:
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