MOHMEDAJIM RASID PATEL,BHARUCH GUJARAT V. WARD 1(4) INCOME TAX OFFICER, BHARUCH

ITA 598/SRT/2025

AI Insights

The case involves an appeal by Mohmedajim Rasid Patel against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of Rs.26,07,495 to the assessee's income for the Assessment Year 2013-2014. The addition was initially made by the AO due to a difference in the valuation of the closing stock. The assessee argued that the closing stock was not in terms of the value of the sim-card but in the nature of unsold talk time, which was also offered as commission income of Rs.32,24,603. The Tribunal found that the issue required verification by the AO and directed further examination of the provided details.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 832330 (ITAT-SURAT)
• Duration Of Justice: 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 24-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: KRUTARTH DESAI

Judgement Text

" आयकर अपीलीय अिधकरण,सूरत \u0010ा यपीठ ‘एस.एम.सी’, सूरत । IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH ‘SMC’, SURAT [conducted through Virtual Court at Ahmedabad Benches, Ahmedabad] \u001aी संजय गग , \u0010ा ियक सद क े सम\"। Before Shri Sanjay Garg, Judicial Member आयकर अपील सं /ITA No.598/SRT/2025 िनधा \u0010रण वष\u0010 /Assessment Year : 2013-14 Mohmedajim Rasid Patel Nabipur Bharuch – 392 210 (Gujarat) बनाम/ v/s. Ward-1(4) Income Tax Officer Bharuch – 392 001 \u0014थायी लेखा सं./PAN: BQYPP 7770 F (अपीलाथ&/ Appellant) ('( यथ&/ Respondent) Assessee by : Shri Krutarth Desai, Advocate Revenue by : Shri Ajay Uke, Sr.DR सुनवाई की तारीख/Date of Hearing : 08/01/2026 घोषणा की तारीख /Date of Pronouncement: 19/01/2026 आदेश/O R D E R The present appeal has been preferred by the assessee against the order of office of the Learned Commissioner of Income Tax, Appeals, ADDL/JCIT (A)-1 Gurugram [hereinafter referred to as ‘CIT(A)’] dated 26/03/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2013-2014. 2. The sole issue involved in this appeal relating to the issue of the valuation of the closing stock. The assessee is engaged in the business of distribution of sim-card talk time. The Assessing Officer (AO), during the assessment proceedings, noted that there was a difference of valuation of the Printed from counselvise.com ITA No.598/SRT/2025 Mohmedajim Rasid Patel vs. Ward-1(4) ITO Asst. Year : 2013-14 2 closing stock which he found of Rs.26,07,495/- and added the same to the income of the assessee. 3. The Ld. CIT(A) confirmed the addition so made by the AO. 4. Before this Tribunal, the Ld. Counsel for the assessee has submitted that the closing stock shown by the assessee was not in terms of the value of the sim-card, rather it was in the nature of talk time that remained unsold. He has submitted that the differential value of the closing stock was offered for taxation and was offered as commission income received of Rs.32,24,603/-. That the AO, while making valuation of the closing stock, has not considered the said amount of Rs.32,24,603/-. He has submitted that the said commission income offered by the assessee was out of the stock sold part of the payment made by the assessee. 5. This issue, in my view, requires verification at the ends of the AO. The AO will verify the above contention of the assessee and if found correct, will not make any addition on this issue. The assessee will furnish the necessary details and explanation, in this respect, and thereafter the AO will examine and verify the same and pass a speaking order on this issue. 5. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 19 /01/2026. Sd/- ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 19/01/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS Printed from counselvise.com ITA No.598/SRT/2025 Mohmedajim Rasid Patel vs. Ward-1(4) ITO Asst. Year : 2013-14 3 आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)- concenred 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , सूरत /AR,ITAT, Surat/Ahmedabad. 6. गाड\u0010 फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT,Surat/Ahmedabad 1. Date of dictation (dictation pad is attached with the file)) : 08.1.2026 2. Date on which the typed draft is placed before the Dictating Member. : 11.1.2026 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 19.1.26 7. Date on which the file goes to the Bench Clerk. : 19.1.26 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 Despatch of the Order : Printed from counselvise.com "