ASSOCIATED PROJECTS INFRA,HYDERABAD vs. DCIT., CENTRAL CIRCLE -2(4), HYDERABAD

ITA 1482/HYD/2025Status: DisposedITAT Hyderabad07 January 2026AY 2020-21Bench: Shri Ravish Sood (Judicial Member), Shri Madhusudan Sawdia (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal admitted an affidavit from M/s Sai Sri Constructions as additional evidence, which clarified that the write-off was an accounting adjustment and not a remission of liability. However, since this evidence was not examined by the lower authorities, the matter was restored to the Assessing Officer for verification and a fresh decision.

What were the facts?

The assessee firm's appeal against the addition of Rs. 56,23,216/- made under Section 41(1) of the Income Tax Act, 1961, was brought before the Tribunal. This addition was based on a creditor, M/s Sai Sri Constructions, writing off the amount as bad debt. The Assessing Officer treated this as a remission or cessation of liability for the assessee.

What were the issues?

Whether the write-off of an amount by a creditor as bad debt constitutes a remission or cessation of liability for the assessee under Section 41(1) of the Income Tax Act, especially when supported by an affidavit clarifying it as an accounting adjustment.

Which sections of the Income-tax Act were involved?

Section 41(1),Section 133A,Section 143(2),Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: Shri Ravish SoodShri Madhusudan Sawdia

Hearing: 18/12/2025

Per Madhusudan Sawdia, A.M.:

This appeal is filed by M/s. Associated Projects Infra (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals)-12, Hyderabad (“Ld. CIT(A)”) dated 22.07.2025 for the A.Y. 2020-21. ITA No 1482 of 2025 Associated Projects Infra

2.

The assessee has raised the following grounds of appeal: “1 The order of CIT(A) is erroneous of law and on facts of the case. 2 The CI

The order continues below.

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