INDUTCH COMPOSITES TECHNOLOGY PRIVATE LIMITED,VADODARA vs. DEPUTY COMMISSIONER, CIRCLE 1(1)(1), VADODARA

ITA 2004/AHD/2025Status: DisposedITAT Ahmedabad18 February 2026AY 2014-15Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)9 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the lower authorities failed to properly consider the assessee's explanations and evidence for both additions. For the TDS mismatch, the matter was restored to the AO for fresh adjudication. For the share valuation, the Tribunal agreed that the AO's method was not in accordance with law and the issue regarding non-resident shareholders was not adequately addressed due to insufficient evidence. This issue was also remanded to the AO for fresh adjudication after allowing the assessee due opportunity of hearing.

What were the facts?

The assessee appealed against two additions made by the lower authorities for AY 2014-15: Rs. 48,24,711/- for alleged suppression of sales based on a TDS credit mismatch, and Rs. 60,95,145/- under Section 56(2)(viib) related to the valuation of shares. For the TDS issue, the assessee claimed the income was recorded and TDS was delayed by the deductor. For the share valuation, the assessee contended the AO's method was arbitrary and not prescribed by law, and that a portion of shares were issued to non-residents to whom the section does not apply.

What were the issues?

1. Whether the addition based on TDS credit mismatch for alleged suppression of sales was justified without proper consideration of the assessee's explanation. 2. Whether the share valuation under Section 56(2)(viib) by the AO, using an unprescribed method and rejecting the assessee's valuation, was valid, and the applicability of the section to shares issued to non-residents.

Which sections of the Income-tax Act were involved?

Section 250,Section 56(2)(viib)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SMT. ANNAPURNA GUPTA & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Nishit Shah, AR, Shri C Dharani Nath, Sr.DR
For Respondent: Shri C Dharani Nath, Sr.DR
Hearing: 05/02/2026

PER ANNAPURNA GUPTA, AM:

The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), ADDL/JCIT (A)-1, Nashik (hereinafter referred to as “CIT(A)”), dated 28.08.2025 passed under Section 250 of the Income Tax Act,

ITA No. 2004/Ahd/2025 [Indutch Composites Technology Pvt. Ltd. vs. Deputy Commissioner] A.Y. 2014-15 - 2 –

1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2014-15. 2. The grounds of appeal raised by the

The order continues below.

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