Trading loss on sale of old stock allowable: ITAT Delhi

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...