Loss by writing off inventory disallowed in absence of necessary evidence

Gem Spinners India Limited Vs ACIT (ITAT Chennai) ITAT Chennai held that disallowed the claim of loss on account of written off inventory as the assessee failed to produce necessary evidence proving that such stock became obsolete and unusable. Facts- The assessee company is in the business of manufacturing cotton yarn and knitted fabrics, filed its return of income for the assessment year 2013-14 on 22.09.2013, declaring net loss of Rs. 2,55,24,649/-. The case was taken up for scrutiny, and during the course of assessment proceedings, AO noticed that during the financial year relevant to asse...