ITAT allows provision for sales return of seeds having short shelf life

DCIT Vs Prabhat Agri Biotech Limited (ITAT Hyderabad) It is a fact that the assessee supplies seeds to its distributors located in the states of Kerala, Andhra Pradesh and Karnataka and after the season is complete the sales distributors identify the stock of seeds of various varieties which are not sold by the end of Ruby season of plantation. As a matter of fact Ld. CIT(A) noted that the distributors how to return the unsold stock after the end of the season and if such receipts are to be sold subsequently they need appropriate preservation and chemical treatment to sustain its utility; and ...