ACIT, CENTRAL CIRCLE - 2(2), HYDERABAD vs. AMR INDIA LIMITED, HYDERABAD

ITA 534/HYD/2024Status: DisposedITAT Hyderabad24 March 2025AY 2017-1847 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that additions made solely on the basis of third-party statements without providing an opportunity for cross-examination or corroborative evidence are unsustainable. Similarly, disallowances based on enquiries without providing the report to the assessee for rebuttal are also not valid.

What were the facts?

The Revenue appealed against the deletion of disallowance of depreciation on machinery. The assessee had purchased machinery from M/s. Pradeep Kumar Babulal & Co., which the Assessing Officer considered a shell company. The assessee also made sub-contract payments which were disallowed by the AO.

What were the issues?

Whether disallowances made on the basis of third-party statements and enquiries without due process are sustainable. Whether the assessee discharged its onus by providing documentation for machinery purchases and sub-contract payments.

Which sections of the Income-tax Act were involved?

Section 132,Section 153A,Section 143(2)

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Cases cited in this judgment(3)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, HYDERABAD “B” BENCH : HYDERABAD

Before: SHRI MANJUNATHA G & SHRI K. NARASIMHA CHARY

Hearing: 10.03.2025Pronounced: 24.03.2025

PER MANJUNATHA G, A.M. : The Revenue has filed two appeals ITA.Nos.534 & 535/Hyd./2024 and the assessee has filed two Cross Objection Nos.4 & 5/Hyd./2025 against the separate orders dated 12.03.2024 and 11.03.2024 of the learned CIT(A)-12,

2 ITA.Nos.534 & 535/Hyd./2024 & C.O.Nos.4 & 5/Hyd./2025

Hyderabad, relating to the assessment years 2017-2018 and 2018-2019, respectively.

2.

The Revenue has raised more or less common grounds in both the assessment years and, therefore, for the sake of brevity, the grounds preferred for the assessment year 2017-2018 [ITA.No.534/Hyd./2024] are repr

The order continues below.

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