FILATEX FASHIONS LIMITED,HYDERABAD vs. DCIT CENTRAL CIRCLE -1(3), HYDERABAD

ITA 1616/HYD/2025Status: DisposedITAT Hyderabad11 September 2026AY 2016-1766 pages
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What did the Tribunal hold?

The Tribunal held that once books of account are rejected and income is estimated, separate additions cannot be made based on entries in those rejected books. The issue of loan/advance from a specific party was restored to the AO for verification.

What were the facts?

The assessee's books of account were rejected, and income was estimated. Additions were made under Section 68 for share capital, share premium, and increase in current liabilities. The assessee also challenged the validity of the notice issued under Section 143(2).

What were the issues?

Whether additions under Section 68 for current liabilities are sustainable after rejection of books of account and estimation of income. Validity of notice under Section 143(2).

Which sections of the Income-tax Act were involved?

Section 68,Section 143(2),Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES, HYDERABAD

Before: SHRI RAVISH SOOD, HON’BLE & SHRI MADHUSUDAN SAWDIA, HON’BLE

PER RAVISH SOOD, JM: The present appeal filed by the assessee company is directed against the order passed by the CIT(Appeals)-12, dated 09.09.2025, which in turn arises from the assessment order passed by the AO under Section 143(3) of the Income Tax Act, 1961 (for short, ‘the Act’), dated 29.12.2018 for assessment year

ITA 1616/HYD/2025 FILATEX FASHIONS LI

The order continues below.

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