Rasna Pvt. Ltd. Vs Dy. CIT (ITAT Ahmedabad)
So far as deleting the dis allowance of Rs. 32,28,899/-on account of destroyed stock is concerned. This amount has been disallowed on the ground that similar addition was made in the A.Y. 2008-09 in the case of Waves Foods Pvt. Ltd. on the ground that claim of the assessee regarding stock become absolute on account of expiry date has not been accepted by the department. Accordingly, addition of Rs. 32,28,899/- was made. The product dealt by the Rasna Pvt. Ltd. has shelf life of 18 to 24 months depending upon products. After the period of shelf life products become non-saleable or non re-usable for public consumption. Further, as all the Rasna Products of foods consisting of sugar proteins, products are cut and after verification it is either sold as waste or destroyed depending upon the damages/loss of the contents of finished goods. These products are consumed by the public and they are also subject to Govt. Health Department inspection and item which is perishable in nature after the expiry of its shelf life. Such item has to be destroyed and the loss of consumable stock can be held as accidental to the business of allow ability. In our considered opinion, ld.CIT(A) has given relief to the assessee as per law. Therefore, we do not want to interfere in the order passed by the ld.CIT(A).
