CRUX MANAGEMENT SERVICES PVT LTD,HYDERABAD vs. DCIT., CIRCLE-1(1), HYDERABAD

ITA 1633/HYD/2025Status: DisposedITAT Hyderabad05 August 2026AY 2018-1910 pages
AI SummaryAllowed

What were the facts?

The assessee, engaged in recruitment and consultancy services, filed its return of income. The Assessing Officer (AO) made additions for disallowance of excess contribution to Welfare Fund, disallowance under Section 14A, and disallowance of expenditure under Section 37(1). The CIT(A) upheld these additions.

What did the Tribunal hold?

The Tribunal held that the disallowance of Welfare Fund contribution was incorrect due to the assessee's accounting method, and that no disallowance under Section 14A could be made in the absence of exempt income. It also found that the disallowance under Section 37(1) was not justified as the deductions were properly accounted for.

What were the issues?

Whether excess contribution to Welfare Fund is disallowable, whether disallowance under Section 14A is permissible without exempt income, and whether deductions from bills for services rendered are allowable business expenditure.

Which sections of the Income-tax Act were involved?

Section 36(1)(iv),Section 14A,Section 37(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ Bench, Hyderabad

Before: SHRI MANJUNATHA.G, HON’BLE & SHRI RAVISH SOOD, HON’BLE

Hearing: 05.08.2026

PER MANJUNATHA.G, AM:

This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre

(NFAC), Delhi, dated 13.08.2025, and pertains to assessment year 2018-

19.2.

The assessee has raised the following grounds of appeal:

1.

The order of the Appellate Commissioner is contrary to law, facts and circumstances of the case. Crux Management Services 2. The Appellate Commissioner erred in confirming the disallowan

The order continues below.

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