J U D G M E N T

[ ITA No.174 of 2014]

Vinod Chandran, J.

The assessee is the appellant herein and raises the following questions of law:-

(i) In the facts and circumstances of the case, ought not the Tribunal have held that the revaluation of certain old inventories which were obsolete and non moving items of spares was in accordance with law?

(ii)Whether in the facts and circumstances of the case the assessee was entitled for deduction of the written off value of the obsolete spares and stores? 2. The undisputed facts are that the assessee, a public sector undertaking, had been valuing its assets in the balance sheet. On a verification of the accounts by the Comptroller and Auditor General (C&AG), it was found that the assessee had been valuing assets which had become obsolete. There was also an audit objection raised insofar as the valuation as revealed from the balance sheet of the assessee. Based on this, the assessee had appointed an expert committee to value the obsolete items of stores and spares maintained by the assessee. The expert committee found 313 items of stores valued at Rs.374.23 lakhs as not having been used for the past five years or more, and 14 items valued at Rs.