KOLORS HEALTHCARE INDIA PRIVATE LIMITED,HYDERABAD vs. ACIT., CIRCLE (TDS)-1(1), HYDERABAD

ITA 1261/HYD/2025Status: DisposedITAT Hyderabad09 October 2026AY 2022-234 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the matter in the present appeal to the file of the Assessing Officer (AO) for the limited purpose of reconciliation of figures. This reconciliation pertains to amounts already paid by the assessee towards salary and other expenditures, on which TDS was deducted and deposited within the prescribed time. The Tribunal directed that for amounts where the assessee has not deducted TDS or not deposited it to the Government Treasury, the interest under sections 201(1) and 201(1A) of the Act will be levied in accordance with law. The appeal was treated as allowed for statistical purposes. The Ld. CIT(A)'s order dated 30.03.2026, which had upheld the AO's action but directed verification and credit, is implicitly modified by this restoration.

What were the facts?

The assessee, Kolors Healthcare India Private Limited, filed an appeal against the order of the Commissioner of Income-Tax (Appeal) dated 13.06.2025 for Assessment Year 2022-23. The appeal challenged the demand and interest levied by the Assessing Officer (AO) under sections 201(1) and 201(1A) of the Income Tax Act, 1961, for alleged non-deduction of Tax Deducted at Source (TDS), deeming the assessee as "assessee in default". The AO had previously passed an order on 13.06.2022, and subsequently, another order on 12.12.2024, making further demands due to discrepancies in TDS reconciliation. The assessee contended that TDS was duly deducted on certain expenses but not accounted for by the AO.

What were the issues?

1. Whether the Tribunal should restore the present appeal to the file of the AO for reconciliation of figures relating to amounts paid by the assessee, on which TDS was deducted and deposited, to be decided along with a related matter already restored by the Ld. CIT(A). Assessee's Contention: The assessee argued that since a related appeal concerning a subsequent order of the AO (dated 12.12.2024) for the same assessment year and similar expenditures was restored to the AO by the Ld. CIT(A) for reconciliation, the present appeal should also be restored to the AO for a similar purpose. This would allow for a consolidated decision on the reconciled figures. Revenue's Contention: The judgment does not record any specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES, HYDERABAD

Before: SHRI SANJAY GARG & SHRI MADHUSUDAN SAWDIA

For Respondent: Mr. K Prasad, Sr.AR

Per Sanjay Garg, Judicial Member:

The present appeal preferred by the assessee is against the order of learned Commissioner of Income-Tax (Appeal), Hyderabad-11, [hereinafter referred to as “the Ld. CIT”] dated 13.06.2025 for Assessment Year (AY) 2022-23. ITA 1261/HYD/2025 KOLORS HEALTHCARE INDIA PRIVATE LIMITED

2.

The assessee in this appeal has ag

The order continues below.

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