PRASAD INDRANI,HYDERABAD vs. ACIT, CENTRAL CIRCLE-3(2), HYDERABAD

ITA 2389/HYD/2025Status: DisposedITAT Hyderabad15 July 2026AY 2017-1813 pages
AI SummaryAllowed

What were the facts?

The assessee's property was subject to a search, leading to a notice under section 153A. The CIT(A) deleted the addition under section 50C based on a Supreme Court ruling that the assessee lost ownership, but made a fresh addition under section 56 for an advance received under a Joint Development Agreement (JDA).

What did the Tribunal hold?

The Tribunal held that the advance received under the JDA was a refundable caution deposit and was duly recorded in the books of the associated company. Furthermore, the CIT(A) lacked jurisdiction to make a fresh addition without a show-cause notice, as it was beyond the scope of the original assessment.

What were the issues?

Whether the CIT(A) had the jurisdiction to make a fresh addition without issuing a show-cause notice, and whether the advance received under the JDA constituted taxable income.

Which sections of the Income-tax Act were involved?

Section 153A,Section 50C,Section 56,Section 250(1),Section 45

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD

Before: SHRI VIJAY PAL RAO & SHRI MANJUNATHA G

Pronounced: 15.07.2026

PER VIJAY PAL RAO, VICE PRESIDENT:

This appeal by the Assessee is directed against the Order dated 28.10.2025 of the learned CIT(A), Hyderabad-11, Hyderabad, for the assessment year 2017-2018. 2. The assessee has raised the following grounds of appeal:

1) “The appellate order passed by the Ld. CIT(A) u/s 250 of the Act dt. 28/10/2025 for the assessment year 2017-18 is erroneous both on facts and in law to the extent the same is prejudicial to t

The order continues below.

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