M/s Synergy Telecommunications vs. DCIT-Central Circle – 2

Parties Involved

Facts Summary

The case involves an appeal by the assessee, M/s Synergy Telecommunications, against the order of the Commissioner of Income Tax (Appeals) dated 12.09.2025. The assessee had written off obsolete stock during the assessment year 2015-16. The Assessing Officer disallowed the addition of obsolete stock, leading to the appeal. The assessee's business suffered due to the 2G spectrum scam, and it discontinued its telecom-related business. The assessee valued its closing stock based on the lower of cost or net realizable value as per ICAI Accounting Standard-2 (AS-2). The Assessing Officer rejected the assessee's claim, leading to the appeal.…

Legal Issues

• 1. Whether the Assessing Officer was justified in substituting the assessee's valuation of obsolete inventory by an assumed value.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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