Obsolete Inventory Prepared In Accordance With Accounting Standards And Audited By Independent Auditor, Can Be Written Off: Delhi ITAT

In a recent Delhi ITAT decision, it was ruled that obsolete inventory accounting standards, audited by an independent auditor, can be written off for income tax purposes. The case involved a company challenging the disallowance of inventory write-offs, citing compliance with relevant accounting standards and independent audit validation. The ITAT accepted the company's contentions, emphasizing the importance of adhering to audited financial statements and accounting norms in tax assessments. This decision underscores the significance of accounting standards and independent audits in tax disputes.