VINCI GLOBAL PRIVATE LIMITED,HYDERABAD vs. DCIT., CIRCLE-8(1), HYDERABAD

ITA 1166/HYD/2025Status: DisposedITAT Hyderabad23 September 2026AY 2021-20229 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee sought to admit additional evidence, namely Form 26AS and bank statements, under Rule 29 of the ITAT Rules, 1963. The assessee contended that its previous tax consultant failed to inform it of notices, leading to its inability to participate effectively. The Tribunal found substance in the assessee's contention that the additional evidence would have a direct bearing on explaining the discrepancies in contract receipts and the nature/source of transactions. As these documents were not before the lower authorities and required factual verification, the Tribunal admitted them under Rule 29. The Tribunal further found that the CIT(A) had confirmed the additions in the absence of this documentary evidence. In the interest of justice and to determine the correct taxable income, the issues relating to the additions were restored to the AO's file for fresh adjudication. The AO was directed to afford a reasonable opportunity of being heard to the assessee, allow it to furnish further documents/explanations, and then consider the additional evidence and submissions on merits to determine the correct income for AY 2021-22. The grounds concerning the validity of the notice under Section 143(2), principles of natural justice, and penalty proceedings were not explicitly decided as the matter was remanded for fresh adjudication.

What were the facts?

The assessee, Vinci Global Private Limited, filed its return of income for Assessment Year 2021-22 declaring an income of Rs. 4,89,29,480/-. The case was selected for scrutiny. The Assessing Officer (AO) made additions totaling Rs. 9,47,35,640/-. These included Rs. 5,97,84,707/- treated as unaccounted receipts from M/s Larsen & Toubro Limited, Rs. 2,08,00,000/- treated as unexplained cash credit under Section 68 for short-term borrowings, and Rs. 1,41,50,933/- treated as unaccounted receipts from M/s Triveni Earth Movers Private Limited. The AO passed an assessment order under Section 143(3) r.w. Section 144B on 30.12.2022, determining the total income at Rs. 14,36,65,120/-. The assessee appealed to the CIT(A), NFAC, Delhi, which confirmed the additions. The assessee has now appealed to the ITAT against the CIT(A)'s order dated 10.07.2025.

What were the issues?

1. Whether the notice issued under Section 143(2) was without valid jurisdiction and in contravention of prescribed time limits, rendering the assessment order void ab initio? - Assessee: Contends the notice was invalid. - Revenue: No specific argument recorded. 2. Whether the addition of Rs. 5,97,84,707/- as variation in turnover for AY 2021-22 was justified? - Assessee: Initially claimed TDS credit inadvertently, accepted disallowance and reversal of claim. Later sought to submit additional evidence. - Revenue: AO treated it as unaccounted receipts as the assessee failed to offer it to tax despite claiming TDS credit. CIT(A) confirmed. 3. Whether the addition of Rs. 2,08,00,000/- as short-term borrowings from directors/directors group, treated as unexplained cash credit u/s 68, was justified? - Assessee: Failed to substantiate the nature and source despite specific directions. Later sought to submit additional evidence. - Revenue: AO treated it as unexplained cash credit as the assessee failed to substantiate. CIT(A) confirmed. 4. Whether the addition of Rs. 1,41,50,933/- as variation in receipt of contract receipts for AY 2021-22 was justified? - Assessee: Disclosed contract receipts from M/s Triveni Earth Movers Private Limited at Rs. 10,56,60,377/-, but AO noted a discrepancy with claimed TDS. Later sought to submit additional evidence. - Revenue: AO treated it as unaccounted receipts as the assessee failed to account for them. CIT(A) confirmed. 5. Whether the assessment was concluded in violation of principles of natural justice by completing it without issuing a final opportunity of being heard? - Assessee: Contends assessment was finalized without a final opportunity and by considering additional income. - Revenue: No specific argument recorded. 6. Whether penalty proceedings under Section 270A and 271AAC(1) were initiated without legal basis or factual corroboration? - Assessee: Contends initiation was baseless. - Revenue: No specific argument recorded. 7. Whether the order of the CIT(A) was erroneous and prejudicial to the appellant? - Assessee: General ground of appeal. - Revenue: No specific argument recorded. 8. Whether additional evidence should be accepted during the appeal proceedings? - Assessee: Submitted application under Rule 29 for admission of Form 26AS and bank statements to establish nature and source of transactions. - Revenue: Opposed admission, citing sufficient opportunities given to assessee earlier.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 68,Section 270A,Section 271AAC(1),Section 143(2),Section 156

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES, HYDERABAD

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

PER RAVISH SOOD, JM: The present appeal filed by the assessee company is directed against the order passed by the CIT(A), NFAC, Delhi, dated 10.07.2025, which in turn arises from the assessment order passed by the AO under Section 143(3) r.w.

Section 144B of the Income Tax Act, 1961 (for short, “the Act”), dated 30.12.2022, for the assessment year 2021-22. The assessee company has assailed the impugned order on the following g

The order continues below.

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