IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON’BLE SRI JUSTICE P.SAM KOSHY AND THE HON’BLE SRI JUSTICE SUDDALA CHALAPATHI RAO ITTA.No.421 of 2013 Dt. 06 .03.2026 Between:

The Commissioner of Income Tax(TDS), Hyderabad …. Appellant and M/s Jaypeem Granites (P) Ltd.

…Respondents JUDGMENT: (Per the Hon’ble Sri Justice Suddala Chalapathi Rao

1. The instant appeal has been filed by the appellant/Revenue challenging the order passed by the Income Tax Appellate Tribunal, Bench ‘A’, Hyderabad (for short ‘the ITAT’) in MA.No.125/HYD/2012 in ITA.No.372/Hyd/2010, dt.03.08.2012.

2. The brief facts of the case are that, the assessee is engaged in the business of manufacturing and exporting granite products consisting of handicrafts, artistic stone products, tiles, slabs, monuments, etc. While so, a survey under Section 133A of the Income Tax Act, 1961 (for short ‘the Act’) was conducted by the Assessing Officer at the assessee’s premises on 19.08.2008 and during the said survey, the Assessing Officer found that the assessee had given advances to its sister concern, M/s Odlings (Memorial) Pvt. Ltd. (OMPL), in which shareholders of the assessee held more than 20% substantial inter