Document Fragment View
Fragment Information
Showing contexts for: paracetamol in Farmson Pharmaceuticals Gujarat ... vs Assessee on 19 February, 2015Matching Fragments
21. We have heard rival submissions and perused the orders of the lower authorities, and material available on record. In the instant case, the assessee is engaged in manufacturing and sale of paracetamol. The assessee debited Rs.73,43,678/- in the profit & loss account under the head "loss on account of discarded assets" and claimed deduction for the same. The assessee explained before the AO as under:
"During the period under consideration we identified and scraped some of the assets which were not available for use in business. Accordingly an amount of Rs. 1349840/- was booked as loss in assets in books of accounts of the assessee, out of which Rs. 500264/- was disallowed in computation by the assessee company.