UNIQUE RAIL ROAD CONSULTANTS PRIVATE LIMITED,HYDERABAD vs. DCIT., CENTRAL CIRCLE-1(3), HYDERABAD

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ITA 1277/HYD/2025Status: DisposedITAT Hyderabad19 December 2025AY 2015-16Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)18 pages
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What did the Tribunal hold?

The Tribunal held that the ad-hoc disallowance of travel and vehicle hire charges was not sustainable as the AO did not doubt the genuineness of the expenditure. The issue of double claim for site and other expenses was restored to the AO for verification. The Tribunal upheld the CIT(A)'s decision regarding the assessment order being passed in the name of the assessee company, as the assessee failed to inform the AO about the amalgamation.

What were the facts?

The assessee company claimed expenses for travel, tours, and vehicle hire. The Assessing Officer (AO) disallowed 10% of these expenses as ad-hoc disallowance. The AO also disallowed expenses claimed under 'Site and Other Expenses' alleging double claim. The assessee argued that the assessment order was passed in the name of a non-existent entity due to amalgamation.

What were the issues?

Whether ad-hoc disallowances of expenses are justified without doubting the genuineness of the expenditure, and whether an assessment order passed in the name of an amalgamating company is void if the AO is not informed of the amalgamation.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250,Section 44AB

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, Hyderabad “B” Bench, Hyderabad

आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-

1. 1. निर्धाररती/The Assessee : Unique Rail Road Consultants Private Limited, C/o. P. Murali and Co., Chartered Accountants, 6-3-655/2/3, Somajiguda, Hyderabad – 500082. 2. रधजस्व/ The Revenue : The Deputy Commissioner of Income-tax, Central Circle – 1(3), Hyderabad.

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