DAMODHAR DEVARASHETTI,HYDERABAD vs. THE DCIT CENTRAL CIRCLE 2(1), HYDERABAD, HYDERABAD

ITA 1280/HYD/2026Status: DisposedITAT Hyderabad23 September 2026AY 2020-2111 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that an unsigned document seized from a third party, without corroborative evidence, cannot be considered incriminating material for initiating proceedings under Section 153C. Therefore, the proceedings and the assessment order are not sustainable.

What were the facts?

A search operation found an unsigned Agreement of Sale involving the assessee as a vendor. Proceedings under Section 153C were initiated based solely on this document, leading to an addition by the Assessing Officer and confirmation by the CIT(A).

What were the issues?

Whether an unsigned agreement of sale found from a third party, without corroborative evidence, constitutes valid incriminating material for initiating proceedings under Section 153C of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 132,Section 153C,Section 69A,Section 143(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘SMC‘ Bench, Hyderabad

Before: Shri Ravish SoodShri Madhusudan Sawdia

Hearing: 07/09/2026

Per Madhusudan Sawdia, A.M.:

This appeal is filed by Shri Damodhar Devarashetti (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals)-12, Hyderabad (“Ld. CIT(A)”) dated 11.07.2025 for the A.Y. 2020-21. 2. The assessee has raised the following grounds of appeal:

3.

The brief facts of the case are that the assessee is an individual who filed his return of income for Assessment Year 2020-21 on 10.10.2020, declaring total income of Rs. 5,66,160/-. A search and seizure operation under section 1

The order continues below.

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