KARTHIKEYA HOTELS,HYDERABAD vs. INCOME TAX OFFICER TDS, WARD-1(4), HYDERABAD

ITA 1446/HYD/2025Status: DisposedITAT Hyderabad12 December 2025AY 2020-21Bench: the Tribunal. Shri D. Veera Reddy, being the partner of the assessee and who looks after the affairs of the assessee, has filed an affidavit explaining the reasons that, the appeal relates to proceedings under Section 206C of the Income Tax Act, 1961 and that the order of Ld. CIT(A) dated 27.02.2025 was received by email on 27.02.2025. The partner of the assessee was not well and was having medical issues which required frequent visits to the hospitals and upon performing various procedures9 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the 133-day delay, acknowledging the medical reasons and adopting a lenient approach. It observed that the assessee claimed to be a retail seller, which might exempt them from Section 206C(6A) and 206C(7) provisions. Given the non-cooperation before lower authorities and the ex-parte orders, the Tribunal set aside the CIT(A)'s order and remanded the issue back to the AO to re-examine the applicability of the TCS provisions after providing the assessee a reasonable opportunity of being heard.

What were the facts?

The assessee, a hotel business, failed to collect Tax Collected at Source (TCS) on liquor sales totaling Rs. 2.92 crores for AY 2020-21, leading the Assessing Officer (AO) to initiate proceedings under Section 206C(6A) and 206C(7) and determine a liability of Rs. 4.28 lakhs. The assessee's appeal before the CIT(A) was dismissed for non-prosecution as they failed to appear, and there was a 133-day delay in filing the subsequent appeal before the Tribunal due to the partner's medical issues.

What were the issues?

Condonation of delay in filing the appeal; Applicability of TCS provisions under Sections 206C(6A) and 206C(7) to a retail seller of liquor.

Which sections of the Income-tax Act were involved?

Section 206C,Section 206C(6A),Section 206C(7)

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Cases cited in this judgment(2)Show list

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

PER MANJUNATHA G., A.M : This appeal filed by the assessee is directed against the order of the learned Addl/Joint Commissioner of Income Tax (Appeals) - 4, Delhi, dated 27.02.2025, pertaining to the assessment year 2021-22. 2 Karthikeya Hotels

2.

At the outset, there is a delay of 133 days in filing the captioned appeal before the Tribunal. Shri D. Veera Redd

The order continues below.

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