MANDADI BALAKRISHNA REDDY,HYDERABAD V. ACIT, CIRCLE-6(1), HYDERABAD

ITA 1261/HYD/2026

AI Insights

The case involves Kolors Healthcare India Private Limited appealing against the order of the Commissioner of Income-Tax (Appeals), Hyderabad-11, which confirmed the demand and interest imposed by the AO for non-deduction of TDS, labeling the assessee as 'assessee in default'. The primary contention was regarding discrepancies in TDS figures reported by the assessee and those acknowledged by the AO. The appellate proceedings also addressed a subsequent order by the AO, which further demanded TDS due to non-reconciliation of figures. The CIT(A) upheld the AO's demand but directed verification of payments for due credit. The tribunal decided to restore the matter to the AO for reconciliation of TDS figures related to salaries and other expenditures for the assessment year 2022-23.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 896478 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 08-10-2026
• Assessment Year: 2017-2018
• Appeal Filed On: 09-04-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Period of limitation; TDS; Time period of passing order

Judgement Text

" 1 आयकर अपीलीय अधिकरण, हैदराबाद पीठ ें, हैदराबाद INCOME TAX APPELLATE TRIBUNAL, HYDERABAD BENCHES, HYDERABAD BENCH: B BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER ITA 1261/HYD/2025 (निर्धारण वर्ा/Assessment Year: 2022-23) KOLORS HEALTHCARE INDIA PRIVATE LIMITED C/O., P. MURALI & CO., CHARTERED ACCOUNTANTS, 6-3- 655/2/3, SOMAJIGUDA, HYDERABAD-500088, TELANGANA Vs. ACIT. CIRCLE (TDS)-1(1) OFFICE OF THE ACIT., CIRCLE (TDS)-1(1) HYDERABAD-, TELANGANA अपीलधर्थी Appellant प्रत्यर्थी Respondent Permanent Account Number of Assessee: AADCK8392B अपीलधर्थी द्वारा/Appellant represented by: Mr. P. Murali Mohan Rao, CA प्रत्यर्थी द्वारा/Respondent represented by: Mr. K Prasad, Sr.AR सुनवाई की तारीख / Date of conclusion of hearing: 05-Oct-2026 घोषणा की तारीख / Date of pronouncement: 09-Oct-2026 आदेश / ORDER Per Sanjay Garg, Judicial Member: The present appeal preferred by the assessee is against the order of learned Commissioner of Income-Tax (Appeal), Hyderabad-11, [hereinafter referred to as “the Ld. CIT”] dated 13.06.2025 for Assessment Year (AY) 2022-23. Printed from counselvise.com ITA 1261/HYD/2025 KOLORS HEALTHCARE INDIA PRIVATE LIMITED 2 2. The assessee in this appeal has agitated against the order of the Ld.CIT(A) in confirming the demand along with interest thereupon made by the Assessing Officer [in short, “the AO”] u/s.201(1) & 201(1A) of the Income Tax Act, 1961 [in short “the Act”] for non-deduction of TDS by the assessee by holding that the assessee as “assessee in default”. 3. The Ld. Counsel for the assessee has submitted that subsequent to the passing of the impugned assessment order u/s.201(1) & 201(1A) of the Act by the AO dated 13.06.2022, the AO noticed certain other discrepancies on account of non-reconciliation of figures relating to TDS deducted by the assessee. He thereafter passed another order u/s.201(1) & 201(1A) of the Act dated 12.12.2024 making further demand. The Ld. Counsel for the assessee has submitted that in the appellate proceedings relating to the subsequent order dated 12.12.2024, it was brought before the Ld.CIT(A) that upon certain amounts expended by the assessee, TDS was duly deducted but the same has not been taken into account by the AO, resulting into the impugned demand. The Ld.CIT(A), after considering the submissions of the assessee vide his order dated 30.03.2026 passed against the order of the AO dated 12.12.2024, though, upheld the action of the AO in raising the demand u/s.201(1) & 201(1A) of the Act, however, directed the AO to verify the payments made by the assessee and grant due credit, if any, in accordance with law. 3.1 The Ld. Counsel for the assessee has submitted that since the matter in the assessee’s appeal against the order of the AO dated 12.12.2024, has already been Printed from counselvise.com ITA 1261/HYD/2025 KOLORS HEALTHCARE INDIA PRIVATE LIMITED 3 restored by the Ld.CIT(A) to the file of the AO for reconciliation of figures relating to the amount paid by the assessee and whereas the matter in the present appeal also relates to the same assessment year and relating to the same amounts paid as salary, etc., by the assessee to its employees and therefore, the matter in the present appeal be also restored to the file of the AO to decide along with matter already restored by the Ld.CIT(A) in respect of order of the AO dated 12.12.2024. We, accordingly, restore the matter in this appeal to the file of the AO for limited purpose of reconciliation of figures relating to the amount already paid by the assessee towards salary and other expenditure and upon which TDS was deducted and deposited into the Government Treasury within the prescribed limitation period. The amounts, whereupon the assessee has not deducted TDS or not deposited the same to the Government Treasury, the interest u/s.201(1) & 201(1A) of the Act will be levied in accordance with law. 4. With the above observations, appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on 09.10.2026. Sd/- Sd/- MADHUSUDAN SAWDIA ACCOUNTANT MEMBER SANJAY GARG JUDICIAL MEMBER Hyderabad Dated: 09th October, 2026 TLN Printed from counselvise.com ITA 1261/HYD/2025 KOLORS HEALTHCARE INDIA PRIVATE LIMITED 4 Copy to: 1 KOLORS HEALTHCARE INDIA PRIVATE LIMITED, C/O., P. MURALI & CO., CHARTERED ACCOUNTANTS, 6-3-655/2/3, SOMAJIGUDA, HYDERABAD-500088, TELANGANA 2 ACIT., CIRCLE (TDS)-1(1), OFFICE OF THE ACIT., CIRCLE (TDS)-1(1), HYDERABAD-, TELANGANA 3 THE PCIT / CIT, Hyderabad. 4 THE D.R., ITAT, HYDERABAD BENCH 5 GUARD FILE TRUE COPY ASSISTANT REGISTRAR / SR. PRIVATE SECRETARY I.T.A.T., HYDERABAD Printed from counselvise.com Digitally signed by TUMMALACHARLA LAKSHMI NARAYANA DN: cn=TUMMALACHARLA LAKSHMI NARAYANA, c=IN, o=INCOME TAX APPELLATE TRIBUNAL, ou=INCOME TAX APPELLATE TRIBUNAL, CHENNAI BENCH Date: 2026.10.09 14:18:58 +05'30' TUMMALACHARLA LAKSHMI NARAYANA "