SIBY MINING AND INFRASTRUCTURE PRIVATE LIMITED,SECUNDERABAD V. COMMISIONER OF INCOME TAX (TDS), HYDERABAD

ITA 270/HYD/2025

AI Insights

The case involves Siby Mining and Infrastructure Private Limited, which appealed against the order of the learned CIT(A)-12, Hyderabad, concerning the assessment year 2016-2017. The primary issue arose from a survey operation under section 133A(2A) of the Income Tax Act, 1961, conducted by the Assessing Officer to verify compliance with TDS provisions. The Assessing Officer alleged short deduction of TDS and imposed a total of Rs.18,52,532 as short deduction and interest. The assessee's appeal was initially dismissed by the CIT(A) due to a delay in filing, which was not condoned. The Tribunal found that both the Assessing Officer and the CIT(A) had not adequately considered the assessee's submissions and documents, leading to the decision to remit the case back for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652573 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURPREET SINGH
• Assessee Lawyers: C. SURESH
• Keywords: Reasonable cause; TDS

Judgement Text

" 1 ITA.No.270/Hyd./2025 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD “A” BENCH: HYDERABAD BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MANJUNATHA G, ACCOUNTANT MEMBER ITA.No.270/Hyd./2025 Assessment Year 2016-2017 Siby Mining and Infrastructure Private Limited, Hyderabad. PIN – 500081 PAN AAECS9130L [vs. The Commissioner of Income Tax (TDS), Hyderabad. (Appellant) (Respondent) For Assessee : CA C.Suresh For Revenue : Sri Gurpreet Singh, Sr. AR Date of Hearing : 16.06.2025 Date of Pronouncement : 17.06.2025 ORDER PER MANJUNATHA G. : This appeal has been filed by the Assessee Company against the order dated 24.12.2024 of the learned CIT(A)-12, Hyderabad, relating to the assessment year 2016-2017. 2. Brief facts of the case are that, the assessee is a company engaged in the business of earthwork contract, mining contract and controlled blast work. A survey 2 ITA.No.270/Hyd./2025 operation u/s 133A(2A) of the Income Tax Act, 1961 [in short “the Act”] was conducted by the Assessing Officer on 24.11.2015 at the business premises of the assessee to verify the compliance with respect to TDS provisions of as contained in Chapter XVIIB of the I.T. Act. Before the Assessing Officer the assessee has filed all details including relevant quarterly returns along with challans and also party-wise TDS statements to prove TDS deduction on various payments including salary u/sec.192B, TDS on contract payments u/sec.194C, TDS on interest on loan u/sec.195 etc., However, the Assessing Officer without considering the relevant details filed by the assessee, computed the short deduction of TDS u/sec.201(1) and consequential interest u/sec.201(1A) of the Act and determined the total short deduction of TDS and interest at Rs.18,52,532/-. 3. Aggrieved by the assessment order passed by the Assessing Officer, the assessee carried the matter in appeal before the learned CIT(A) with a delay of 181 days and explained the reasons for delay in filing the appeal. The 3 ITA.No.270/Hyd./2025 learned CIT(A) dismissed the appeal filed by the assessee in limine without condoning the delay in filing the appeal on the ground that reasons given by the assessee does not come under ‘sufficient and reasonable cause’. 4. Aggrieved by the order of the learned CIT(A), the assessee is now in appeal before the Tribunal. 5. CA C. Suresh, Learned Counsel for the Assessee submitted that, the Assessing Officer has passed the assessment order without providing reasonable opportunity of hearing. The learned CIT(A) has dismissed the appeal in limine without condoning the delay even though the assessee has sought for personal hearing through video conferencing to explain the case. Further, the assessee has submitted all the details. Therefore, one more opportunity may please be provided to the assessee to substantiate it’s case with relevant evidences and pleaded that the matter may be restored back to the file of Assessing Officer in the interest of substantial justice. 4 ITA.No.270/Hyd./2025 6. Shri Gurpreet Singh, Sr. AR for the Revenue, fairly agreed that the issue may be set-aside to the file of Assessing Officer to give one more opportunity to the assessee to explain it’s case. 7. We have heard both the parties, perused the material on record and the orders of the authorities below. We find that, admittedly, the learned CIT(A) has dismissed the appeal of assessee in limine without condoning the delay. The Assessing Officer also made the impugned addition without appreciating the relevant documents such as relevant quarterly returns along with challans and also party-wise TDS statements to prove TDS deduction on various payments including salary u/sec.192B, TDS on contract payments u/sec.194C, TDS on interest on loan u/sec.195 etc., made by the assessee. We, therefore, after considering the reasons given by the assessee, condone the delay of 181 days in filing the appeal before the learned CIT(A) and deem it fit and appropriate to remit the matter back to the file of Assessing Officer for fresh verification. The assessee is directed to file all the documents including 5 ITA.No.270/Hyd./2025 relevant quarterly returns etc., to prove it’s case in consequential proceedings. Accordingly, the grounds of the assessee are allowed for statistical purposes. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 17.06.2025 Sd/- Sd/- [VIJAY PAL RAO] [MANJUNATHA G] VICE PRESIDENT ACCOUNTANT MEMBER Hyderabad, Dated 17th June, 2025 VBP Copy to 1. Siby Mining and Infrastructure Private Limited, Hyderabad. C/o.SEKHAR & SURESH, 133/4 Next To Bible House Bus Stop, Rashtrapati Road, Hyderabad. PIN – 500 003. Telangana. 2. The Commissioner of Income Tax (TDS), Hyderabad. 3. The CIT(A)-12, 6th Floor, Aaykar Bhawan, Basheerbagh, Hyderabad – 500 004. 4. The Income Tax Officer, TDS Ward-2(2), Hyderabad. 5. The DR ITAT “A” Bench, Hyderabad. 6. Guard File. //By Order// //True Copy// "