VK WAREHOUSING ENTERPRISES,HYDERABAD vs. DCIT., CIRCLE-6(1), HYDERABAD

ITA 737/HYD/2025Status: DisposedITAT Hyderabad07 January 2026AY 2017-18Bench: SHRI MANJUNATHA G (Accountant Member), SHRI RAVISH SOOD (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal set aside the issue of depreciation disallowance to the CIT(A) for fresh adjudication after verifying facts. The addition of unexplained cash deposits was also set aside for fresh adjudication. The disallowance of interest on delayed TDS was upheld. The disallowance under Section 40(a)(ia) was restored to the CIT(A) for fresh adjudication. The Revenue's grievance regarding Rule 46A was not accepted, but the CIT(A) was directed to verify the claim of capital expenditure.

What were the facts?

The present cross-appeals by the assessee and Revenue are against an order by the CIT(A) which arose from an assessment order passed under Section 144. The assessee filed a return declaring a loss, but the AO completed the assessment under Section 144, determining income at Rs. 3,37,78,220/-, after making several additions and disallowances.

What were the issues?

Whether the disallowance of depreciation, addition of unexplained cash deposits, and disallowance under Section 40(a)(ia) were justified, and if the Revenue's grievance regarding Rule 46A was valid.

Which sections of the Income-tax Act were involved?

Section 144,Section 37(1),Section 69,Section 234B,Section 271(1)(b),Section 69C,Section 115BBE,Section 68,Section 40(a)(ia),Section 154,Section 46A

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

Before: SHRI MANJUNATHA G & SHRI RAVISH SOOD

Hearing: 22/12/2025

Heard together (2 matters)

ITA No.737/Hyd/2025
ITA No.881/Hyd/2025

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

PER RAVISH SOOD, J.M: The present cross-appeals filed by the assessee company and Revenue are directed against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (for short, “CIT(A)”), dated 28.02.2025, which in turn arises from the order passed by the ITA Nos.737 & 881/Hyd/2025 2

AO under Section 144 of the Income-tax Act, 1961, dated 2

The order continues below.

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