JITUBHAI SHAMALDAS TOKLE,BHAVNAGAR V. THE ITO, WARD-1(10), BHAVNAGAR

ITA 2385/AHD/2025

AI Insights

The case involves Jitubhai Shamaldas Tokle, the proprietor of Tokle Timbers, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The primary contention was the incorrect valuation of closing stock for the Assessment Year 2022-23, which led to an addition of Rs.31,38,096 under Section 69 of the Income-tax Act, 1961. The assessee argued that the additional evidence concerning the valuation was not admitted as per Rule 46A of the IT Rules, and there was no difference in the quantity of closing stock, only in valuation. The Tribunal decided to remand the issue back to the Assessing Officer for a detailed examination of the closing stock valuation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 828805 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Ahmedabad
• Assessment Year: misc
• Appeal Filed On: 02-12-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA R. KAMBLE, JUDICIAL MEMBER ITA No.2385/Ahd/2025 (Assessment Year: 2022-23) Jitubhai Shamaldas Tokle, Prop. Tokle Timbers, Plot No. 89/1, Ferry Road, Juna Bunder, Bhavnagar-364 001 [PAN : ACSPT 8928 Q] Vs. Income Tax Officer, Ward 1(10), Bhavnagar (Appellant) .. (Respondent) Appellant represented by : Shri Mehul K. Patel, Advocate Respondent represented by: Shri Virbhadra Vishalavat, Sr. DR Date of Hearing 13.01.2026 Date of Pronouncement 13.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the Assessee against the order dated 17.10.2025 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (‘Ld. CIT (A)’ in short), under Section 250 of the Income-tax Act, 1961 (‘the Act’ in short) for Assessment Year 2022-23 2. The assessee has raised following grounds of appeal :- “(1) That on facts, and in law, the learned NFAC has grievously erred in not admitting the additional evidence in terms of Rule 46A of the IT Rules. (2) That on facts, and in law, the learned NEAC has grievously erred in confirming the addition of Rs.31,38,096/- made u/s 69 of the Act in respect of alleged difference in valuation of closing stock, while accepting the fact that there is no difference in quantity of closing stock. (3) That ALTERNATIVELY, and without prejudice to the above grounds of appeal, the value adopted as closing stock ought to be directed to be taken as opening stock of the next assessment year..” 3. The only issue that needs to be adjudicated is the valuation of the closing stock. The assessee submitted a reconciliation before the Ld. CIT(A), which was not accepted. In this regard, the Ld. AR submitted that the assessee had, by mistake, uploaded auto- updated data from Tally, which was incorrect. Printed from counselvise.com ITA No. 2385/Ahd/2025 Jitubhai Shamaldas Tokle Vs. ITO Asst.Year :2022-23 - 2– 4. Considering the arguments of both sides and in the interest of justice, the matter is remanded to the file of the Assessing Officer to examine the valuation of closing stock after verifying the bills and vouchers and after taking into consideration the opening stock, purchases made during the year, and other relevant records, and thereafter to pass an order de novo. The assessee shall submit all relevant details, statements, submissions, and supporting documents before the Assessing Officer and shall comply with the notices issued by the revenue authorities without seeking unnecessary adjournments. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Heard, dictated, pronounced and order issued in open court today on 13.01.2026 Sd/- Sd/- (SUCHITRA R. KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 13.01.2026 **btk आदेशकी\u0007ितिलिपअ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007/ The Appellant 2. \b थ\u0007/ The Respondent. 3. संबंिधतआयकरआयु\u0015/ Concerned CIT 4. आयकरआयु\u0015(अपील) /The CIT(A)- 5. िवभागीय\bितिनिध, आयकरअपीलीयअिधकरण, अहमदाबाद/ DR, ITAT, Ahmedabad 6. गाड फाईल /Guard file. आदेशानुसार/ BY ORDER, True Copy सहायकपंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation … ……………..13.01.2026 2. Date on which the typed draft is placed before the Dictating Member ….12.01.2026 3. Other Member…12.01.2026 4. Date on which the approved draft comes to the Sr.P.S./P.S…..12.01.2026 5. Date on which the fair order is placed before the Dictating Member for pronouncement…..13.01.2026 6. Date on which the fair order comes back to the Sr.P.S./P.S….13.01.2026 7. Date on which the file goes to the Bench Clerk …13.01.2026 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "