GLOBAL DEVELOPERS,NELLORE vs. DCIT, CIRCLE-1, NELLORE

ITA 1683/HYD/2025Status: DisposedITAT Hyderabad04 February 2026AY 2018-2019Bench: Shri Manjunatha G. (Accountant Member), Shri Ravish Sood (Judicial Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal observed that the assessee firm had deducted TDS on various payments but failed to deposit Rs. 38,57,609/- into the Central Government account. Therefore, the AO rightly disallowed 30% of this amount. The CIT(A) had upheld this disallowance, and no infirmity was found in the CIT(A)'s view. Consequently, the Tribunal upheld the disallowance.

What were the facts?

The assessee firm's appeal is against the order of the CIT(A), which upheld the disallowance of 30% of TDS not deposited by the assessee. The AO had disallowed Rs. 11,57,283/- on account of failure to deposit TDS of Rs. 38,57,609/-. The assessee had claimed this interest expenditure on a loan from LIC Housing Finance, used for investment in its project/land.

What were the issues?

Whether the disallowance of interest expenditure under Section 40(a)(ia) for failure to deposit TDS is justified, despite the assessee having deducted the TDS amount.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 40(a)(ia),Section 194C,Section 194A,Section 194J

AI-generated summary — verify with the full judgment below

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

Before: Shri Manjunatha G. & Shri Ravish Sood

Hearing: 28/01/2026

PER. RAVISH SOOD, J.M:

The present appeal filed by the assessee firm is directed against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 03/09/2025, which in turn arises from the order passed by the Assessing Officer (for short, “AO”) under section 143(3) r.w.s 144B of the Income Tax Act, 1961 (for short, “the Act”), dated 14/06/2021 for the Assessment Year (AY) 2018-19. The assessee firm has assailed the impugned order of the CIT(A) on the following grounds of appeal:

2 “1. That on facts and in law, the Ld. CIT(A) erred in confirming the addition of ₹. 11,

The order continues below.

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