SYNERGY TELECOMMUNICATIONS, MOHALI,MOHALI vs. DEPUTY COMMISSIONER OF INCOME TAX CC-2, CHANDIGARH

ITA 1336/CHANDI/2025Status: DisposedITAT Chandigarh10 September 2026AY 2015-201617 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had valued the inventory in accordance with the prescribed accounting standard, supported by physical verification and auditor's certification. The Assessing Officer failed to provide any positive material or independent valuation to counter the assessee's claim.

What were the facts?

The assessee wrote off obsolete stock valued at approximately Rs. 60 Crores. The Assessing Officer disallowed this write-off, stating the valuation was self-serving and lacked supporting evidence. The assessee's banker had also classified its account as NPA due to the stock's condition.

What were the issues?

Whether the Assessing Officer was justified in disallowing the write-off of obsolete stock when the assessee followed recognized accounting principles and provided supporting documentation.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2015-16 arises out of an order of learned Commissioner of Income Tax (Appeals) – 3, Gurgaon [CIT(A)] dated 12.09.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) of the Act on 21.12.2017. The sole grievance of the assessee is confirmation of addition of obsolete stock as written-off by the assessee duri

The order continues below.

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