Addition not sustained as non-accounting of expired stock doesn’t impact profitability

Abhinav Malik Vs ITO (ITAT Chandigarh)

ITAT Chandigarh held that mere non-accounting of the expired stock as part of the opening stock wouldn’t have any impact on the profitability. Accordingly, addition thereof is liable to be deleted.

Facts- During the course of assessment proceedings, the AO observed that the assessee has shown opening stock of Rs.6,16,750/- for F.Y. 2011-12 whereas, the closing stock for F.Y. 2010-11 has been shown at Rs.61,26,900/- and therefore

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