PREM RAJ RAYEPUDI,HYDERABAD vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1), VIJAYAWADA

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ITA 24/VIZ/2020Status: DisposedITAT Visakhapatnam29 April 2021AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, while noting the assessee's non-compliance, decided to grant one more opportunity in the interest of justice. The orders of the lower authorities were set aside, and the matter was remitted back to the AO for a fresh assessment.

What were the facts?

The Assessing Officer (AO) made an ex-parte addition of Rs. 35,54,680/- relating to investment in shares due to the assessee's non-response to notices. The CIT(A) confirmed this order ex-parte as well. The assessee appealed, claiming non-receipt of notices due to a change of address.

What were the issues?

Whether the ex-parte assessment and confirmation by the CIT(A) were justified given the assessee's claim of non-receipt of notices due to a change of address.

Which sections of the Income-tax Act were involved?

Section 144,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI N.K. CHOUDHRY, HON’BLE & SHRI D.S. SUNDER SINGH, HONBLE

Hearing: 22/04/2021

O R D E R PER D.S. SUNDER SINGH, ACCOUNTANT MEMBER

This appeal has been preferred by the assessee against the order dated 23/10/2019 passed by the Ld.Commissioner of Income Tax (Appeals)-2 [for short, “ld.CIT(A)”],Guntur u/sec. 250(6) of the Income Tax Act, 1961 (hereinafter referred to as "Act") for the A.Y. 2011-12.

2.

All the grounds of appeal are related to the addition made by the AO to the extent of Rs. 35,54,680/- relating to investment in shares of M/s. Srikara Parentarals Pvt. Ltd. which was sustained by the ld.CIT(A). The AO completed the assessment exparte u/sec. 144 for non-response of the assessee for the notices issued by the AO. The ld.CIT(A) confirmed the order of the AO exparte since there was no response from the assessee. Against which, the assessee filed the appeal before this Tribunal and requested to remit the matter back to the file of the AO.

3.

We have heard ld.DR and the material placed on record. We do not appreciate the attitude of the assessee in not complying with the notices issued by the authorities. However, since, the assessee pleaded that the notices were not served to him due to change in the address, in the interest of justice we are inclined to give one more opportunity to the assessee. Therefore, we set aside the orders of the lower authorities and remit the matter back to the file of the AO to redo the assessment afresh on merits after giving proper opportunity to the assessee. The assessee is also directed to cooperate with the department and comply with the notices without fail.

4.

In the result, appeal filed by the assessee stands allowed for statistical purpose.

Order Pronounced in open Court on this 29th day of April, 2021. sd/- Sd/- (N.K. CHOUDHRY) (D.S. SUNDER SINGH) Judicial Member Accountant Member Dated: 29th April, 2021. vr/- Copy to:

1. 1. The Assessee -Prem Raj Rayepudi, Flat no.301, Majonita Paradise, Plot 66, Dattatreya Colony, Asifnagar, Hyderabad.

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