What did the Tribunal hold?

The Tribunal held that the appeal was withdrawn under a bona fide belief and, considering the sequence of events and the High Court's liberty, the appeal should be restored to the CIT(A) for adjudication on merits.

The assessee withdrew an appeal before the CIT(A) believing a writ petition would be successful. The High Court dismissed the writ petition, advising the assessee to pursue the existing appeal. However, the assessee did not revive the appeal, and the CIT(A) dismissed it as withdrawn.

What were the issues?

Whether an appeal dismissed as withdrawn should be restored when the withdrawal was based on a mistaken belief that a writ petition would provide relief, and the High Court directed the assessee to pursue the existing appeal.

Mohammed Zaker, Hyderabad vs ITO | ITAT Hyderabad 2026

Income Tax Appellate Tribunal, Hyderabad “A” Bench, Hyderabad

PER MANJUNATHA G., A.M : This appeal filed by the assessee is directed against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [in short “NFAC”], Delhi, dated 10.12.2025, pertaining to the assessment year 2022-23. 2. We have heard both parties, perused the material available on record, and had gone through the orders passed by the authorities below. Admittedly, the assessee had withdrawn the appeal filed before the learned CIT(A), NFAC, by filing a letter dated 30.07.2024, stating that he did not wish to press the appeal for the present and further reserving liberty to file a fresh appeal, if so advised. Based on the said letter, the learned CIT(A) dismissed the appeal as withdrawn. The learned counsel for the assessee submitted that the assessee had withdrawn the appeal under the bona fide belief that the writ petition filed before the Hon'ble High Court of Telangana would be considered favourably. However, the Hon'ble High Court, vide its order dated 25.09.2024 in W.P. No.19028 of 2024, dismissed the writ petition on the 3 Mohammed Zaker ground that the assessee had already availed an efficacious alternative remedy, while reserving liberty to the assessee to press the existing appeal before the appellate authority. However, the assessee did not take any steps to revive the appeal after the order passed by the Hon'ble High Court. In the meantime, the learned CIT(A), vide order dated 10.12.2025, dismissed the appeal as withdrawn on the basis of the letter filed by the assessee, without adjudicating the issues on merits.

Since the assessee had withdrawn the appeal before the learned CIT(A) under the bona fide belief that it would get relief from the Hon'ble High Court of Telangana, and the Hon'ble High Court dismissed the writ petition on the ground that the assessee had already availed an efficacious alternative remedy, while reserving liberty to press the existing appeal before the appellate authority, in our considered view, although the assessee has not taken any steps to restore the appeal before the learned CIT(A) after the order passed by the Hon'ble High Court, going by the sequence of events and the purpose for which the appeal was withdrawn, the appeal deserves to be restored to the file of the learned CIT(A) so as to enable the assessee to effectively prosecute

4 Mohammed Zaker the appeal on merits. Thus, we set aside the order of the learned CIT(A) and restore the appeal to the file of the learned CIT(A) with a direction to restore the appeal filed by the assessee and decide the issues involved therein on merits, in accordance with law, after providing a reasonable opportunity of being heard to the assessee. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the Open Court on 22nd July, 2026. श्री विजय पाल राि (मंजूनाथ जी) (VIJAY PAL RAO) (MANJUNATHA G.) उपाध्यक्ष /VICE PRESIDENT लेखा सदस्य/ACCOUNTANT MEMBER

Hyderabad, dated 22.07.2026. TYNM/sps

5 Mohammed Zaker

आदेशकी प्रतततिति अग्रेतषत/ Copy of the order forwarded to:- 1. तनर्ााररती/The Assessee : MOHAMMED ZAKER, E-BLOCK, FLAT NO-101, ADITYA EMPRESS TOWERS, SHAIKPET NALA,GOLCONDA POST, HYDERABAD-500008, TELANGANA 2. राजस्व/ The Revenue : ITO, WARD 8(1), SIGNATURE TOWERS OPP, BOTANICAL GARDEN RD, VENKAT ENCLAVE, WHITEFIELDS, KONDAPUR, HYDERABAD-500084, TELANGANA

The Principal Commissioner of Income Tax, Hyderabad. 4. तवभागीयप्रतततनतर्, आयकर अिीिीय अतर्करण, हैदराबाद / DR, ITAT, Hyderabad 5. गार्ाफ़ाईि / Guard file

आदेशानुसार / BY ORDER TIRUPATI YAMINI YAMINI NAGA MALLESWARI NAGA Date: 2026.07.27 11:31:55 MALLESWARI +05'30' Sr. Private Secretary ITAT, Hyderabad

MOHAMMED ZAKER,HYDERABAD vs. ITO, WARD 8(1), HYDERABAD

What did the Tribunal hold?

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