SHRING CONSTRUCTION COMPANY PVT. LTD.,DEHRADUN vs. DCIT, CIRCLE-2, MUZAFFARNAGAR

ITA 7057/DEL/2018Status: DisposedITAT Delhi11 February 2026AY 2012-13Bench: Sh. Satbeer Singh Godara, Judicial Member & Sh. Naveen Chandra (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the disallowance under Section 40(a)(ia) is allowable if the tax has been paid in the subsequent year, directing the AO to verify and grant the benefit of the first proviso to Section 40(a)(ia). Regarding the Section 68 addition, the Tribunal found that the assessee failed to establish the genuineness and creditworthiness of the cash credits, rejecting the ground. The penalty under Section 271(1)(c) for the Section 68 addition was deleted as the onus of proving genuineness is subjective and based on the facts of the case.

What were the facts?

The assessee's twin appeals were against the CIT(A)'s orders concerning disallowance of payments to contractors and the addition of unexplained cash credits. The primary issue was the disallowance of Rs. 1,26,89,824/- and Rs. 7,62,000/- under Section 40(a)(ia) for non-deposit of TDS before the due date of filing the return, and the addition of Rs. 24,00,000/- as unexplained cash credit under Section 68.

What were the issues?

Whether the disallowance under Section 40(a)(ia) for non-deposit of TDS is allowable if tax is paid in the subsequent year, and whether the cash credits under Section 68 are unexplained and attract penalty under Section 271(1)(c).

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 68,Section 271(1)(c),Section 143(3)

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI

Before: Sh. Satbeer Singh Godara & Sh. Naveen Chandra

For Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Hearing: 11.02.2026Pronounced: 11.02.2026

Heard together (2 matters)

ITA No. 5226/Del/2016
ITA No. 7057/Del/2018

Read from the judgment's own cause title. This page is filed under one of them.

Per Satbeer Singh Godara, Judicial Member:

These assessee’s twin appeals ITA Nos. 5226/Del/2016 & ITA No. 7057/Del/2018 for Assessment Year 2012-13 arise against the CIT(A), Muzaffarnagar’s orders dated 29.07.2016 & 26.09.2018 in case Nos. 39/15-16/MZR & 4003-3815-1170-218, in proceedings u/s 143(3) and 271(1)(c) of the Income Tax Act, 1961 (in short “the Act”), respectively.

2.

Heard both the parties at length. Case files perused.

3.

We notice during the course of hearing that the assessee’s “quantum” appeal ITA No. 5226/Del/2016 raises it’s twin substantive ground/grievance seeking to reverse the learned Shring Construction

The order continues below.

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