SRI TIRUMALA ESTATES,HYDERABAD vs. ITO., WARD-1(1), HYDERABAD

ITA 1086/HYD/2024Status: DisposedITAT Hyderabad29 October 2025AY 2020-21Bench: SHRI G. MANJUNATHA, HON’BLE (Accountant Member), SHRI RAVISH SOOD, HON’BLE (Judicial Member)1 pages

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the ad hoc disallowance of 10% of land development expenses was incorrect as the majority of expenses were paid to regulatory authorities and through banking channels, and no specific discrepancies were pointed out in the assessee's books. The Tribunal also considered the commission expenses.

What were the facts?

The assessee, a real estate firm, claimed commission and land development expenses. The Assessing Officer made an ad hoc disallowance of 10% on both these expenses, which was upheld by the CIT(A). The assessee appealed this decision.

What were the issues?

Whether ad hoc disallowance of commission and land development expenses without rejecting books of accounts is justified.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ A ‘ Bench, Hyderabad

आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- Sri Tirumala Estates, 16-2-705/10/A/B, 2nd Floor, 1. निर्धाररती/The Assessee : Malakpet, Hyderabad – 500036. 2. रधजस्व/ The Revenue : The Income Tax Officer, Ward 1(1), Hyderabad. 3. The Principal Commissioner of Income Tax, Hyderabad. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण, हैदरधबधद / DR, ITAT, Hyderabad 5. गधर्ाफ़धईल / Guard file

आदेशधिुसधर / BY ORDER

Sr. Private Secretary ITAT, Hyderabad

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