SRINIVASA LAXMI CONSTRUCTION CO,MANCHERIAL vs. ACIT, CIRCLE - 1, KARIMNAGAR

आदेश / O R D E R PER MADHUSUDAN SAWDIA, AM:

This appeal is filed by M/s. Srinivasa Laxmi Construction Co. (“the

assessee”), feeling aggrieved by the order passed by the Learned

Commissioner of Income Tax (Appeals), National Faceless Appeal Centre

(NFAC), Delhi, (“Ld. CIT(A)”) dated 30.12.2025 for the A.Y. 2023-24.

1) On the facts and in the circumstances of the case, the order of the ld. CIT(A) is erroneous both on facts and in law. The ld. CIT(A) failed to appreciate that on couple of occasions the Appellant has sought time to file submissions.

2) Without prejudice to the above, the ld. CIT(A) erred in sustaining the addition made by the AO of Rs.1,42,08,081 by disallowing 30 percent of the purchases made above fifty lakhs on the alleged ground that the appellant has not deducted TDS on the purchases made.

3) The authorities below failed to appreciate that the appellant has made purchases from listed companies like Orient Cements and that some of the sellers have filed their returns admitting the said purchases by the appellant.

4) Any other ground that may be urged at the time of hearing.

before the Ld. CIT(A) against the assessment order passed by the

Learned Assessing Officer (“Ld. AO”) under section 143(3) read with

section 144B of the Income-tax Act, 1961 (“the Act”) dated 18.03.2025.

During the appellate proceedings, the assessee failed to comply with the

notices issued by the Ld. CIT(A). Consequently, the Ld. CIT(A) dismissed

the appeal of the assessee.

before this Tribunal. The Learned Authorised Representative (“Ld. AR”)

submitted that the Ld. CIT(A) passed the impugned order without

providing adequate opportunity to the assessee. It was submitted that, on

account of the said circumstances, the assessee could not effectively

prosecute its appeal before the Ld. CIT(A) by filing the necessary

documentary evidence and written submissions in support of its claim.

The Ld. AR, therefore, prayed that, in the interest of justice, one more :: 3 :: opportunity may be granted to the assessee and the matter may be

restored to the file of the Ld. CIT(A) for fresh adjudication on merits.

opposed the request of the assessee and submitted that the Ld. CIT(A)

had already afforded sufficient opportunities of being heard during the

appellate proceedings. However, the assessee failed to avail the same.

Therefore, according to the Ld. DR, no further opportunity deserves to be

granted and the order of the Ld. CIT(A) should be sustained.

available on record. It is an undisputed fact that the Ld. CIT(A) dismissed

the appeal on account of non-compliance by the assessee during the

appellate proceedings. Although the assessee failed to avail the

opportunities granted by the Ld. CIT(A), we are of the considered opinion

that, in the interest of substantial justice, one final opportunity deserves

to be granted to the assessee to prosecute its appeal on merits. It is a

settled principle of law that disputes should ordinarily be decided on

merits rather than on account of procedural lapses. Considering the facts

and circumstances of the case, we deem it appropriate to set aside the

impugned order of the Ld. CIT(A) and restore the matter to his file for

fresh adjudication. Accordingly, we set aside the impugned order of the

Ld. CIT(A) and restore the matter to his file with a direction to adjudicate

the appeal afresh in accordance with law after providing adequate

. :: 4 :: opportunity of being heard to the assessee. The assessee shall be at

liberty to file all documentary evidence and written submissions in support

of its claim. The assessee is also directed to extend full cooperation

during the appellate proceedings and shall not seek any unnecessary

adjournment. In case of any failure on the part of the assessee to

cooperate, the Ld. CIT(A) shall be at liberty to proceed in accordance with

law.

purposes.

Order pronounced in the open Court on 24th July, 2026. Sd/- Sd/- (रिवश सूद) (मधुसूदन साविडया) (RAVISH SOOD) (MADHUSUDAN SAWDIA) �ाियक सद� /JUDICIAL MEMBER लेखा सद�/ACCOUNTANT MEMBER Hyderabad, dated 24th July, 2026. TLN

आदेशकी �ितिलिप अ�ेिषत/ Copy of the order forwarded to: िनधा�रती/The 1 : Srinivasa Laxmi Construction Co, 18-456/1, IB Chowrastha, Inani Colony, Assessee Mancherial-504208, Telangana राज�/ The Revenue 2 : ACIT, Circle-1, Income Tax Office, Aayakar Bhawan, Near Natraj Theatre, Karimnagar-505001, Telangana 3 The Principal Commissioner of Income Tax, Hyderabad. िवभागीय�ितिनिध, आयकर अपीलीय अिधकरण, हैदराबाद / DR, ITAT Hyderabad. 4 गाड�फ़ाईल / Guard file 5

आदेशानुसार / BY ORDER

Digitally signed by TUMMALACHARLA TUMMALACHARLA LAKSHMI NARAYANA DN: cn=TUMMALACHARLA LAKSHMI LAKSHMI NARAYANA, c=IN, o=INCOME TAX APPELLATE TRIBUNAL, ou=INCOME TAX NARAYANA APPELLATE TRIBUNAL, CHENNAI BENCH Date: 2026.07.24 15:24:25 +05'30'

Sr. Private Secretary ITAT, Hyderabad