SATHI RAJU RELANGI,VISAKHAPATNAM vs. INCOME-TAX OFFICER, WARD-3(3), VISAKHAPATNAM

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ITA 582/VIZ/2025Status: DisposedITAT Visakhapatnam13 May 2026AY 2013-147 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal before the CIT(A) subject to a cost of Rs. 10,000, citing the assessee's medical condition and the need for a justice-oriented approach. The CIT(A)'s order was set aside, and the matter was remanded for adjudication on merits.

What were the facts?

The Assessing Officer initiated proceedings under section 147 and made additions under section 144 due to the assessee not filing the return of income despite substantial financial transactions. The assessee's appeal before the CIT(A) was dismissed in limine due to a delay of 400 days.

What were the issues?

Whether the delay in filing the appeal before the CIT(A) should be condoned due to the assessee's medical condition and whether the CIT(A) was justified in dismissing the appeal without adjudicating on merits.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 153(2),Section 69A,Section 148,Section 142(1),Section 24(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Visakhapatnam Bench, Visakhapatnam

Before: Shri Ravish Sood & Shri Omkareshwar Chidara

आयकर अपीलीय अिधकरण, िवशाखापटणम पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Visakhapatnam Bench, Visakhapatnam Before Shri Ravish Sood, Judicial Member and Shri Omkareshwar Chidara, Accountant Member आ.अपी.सं /ITA No.582/Viz/2025 (िनधा�रण वष�/Assessment Year:2013-14) Sathi Raju Relangi, Vs. Income Tax Officer, Visakhapatnam. Ward-3(3), PAN: AYWPR7120A Visakhapatnam. (Appellant) (Respondent) िनधा�रती �ारा/Assessee by: Shri I Kama Sastry, CA (Hybrid mode) राज� व �ारा/Revenue by: Shri K Prasad, Sr. AR सुनवाई की तारीख/Date of 07/05/2026 Hearing: घोषणा की तारीख/Date of 13/05/2026 Pronouncement: आदेश / ORDER PER. RAVISH SOOD, JM : The present appeal filed by the assessee is directed against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 16/07/2025, which in turn arises from the order passed by the Assessing Officer (for short, “AO”) under section 144 r.w.s 147 of the Income Tax Act, 1961 (for short, “the Act”), dated 28/12/2018 for the Assessment Year (AY) 2013-14. The assessee

2 ITA No.582/Viz/2025 Sathi Raju Relangi vs. ITO has assailed the impugned order of the CIT(A) on the following grounds of appeal: “1. The order passed under section 147 r.w.s. 144 is barred by limitation as it is not put in transmission for being served on the assessee on or before the due date as per the provisions of section 153(2) of the Income-tax Act, 1961. 2. The Ld. CIT(Appeals), National Faceless Appeal Centre is not justified in dismissing the appeal in limine as being beyond time. 3. The Ld. Assessing Officer is not justified in treating an amount of Rs.46,61,500/- as unexplained income under section 69A of the Income-tax Act, 1961. 4. All the above grounds of appeal are without prejudice to one another. 5. The appellant craves leave to add to; alter; amend; modify or delete all or any of the above grounds of appeal.”

2.

Succinctly stated, the AO based on information that though the assessee during the subject year had carried out substantial financial transactions, viz., (i) cash deposits: Rs.86.51 lakhs; (ii) Shri Kalyana Chakravarthi Memorial Trust: Rs.33.40 lakhs; and (iii) paid self - assessment tax on 21/07/2017: Rs.1.50 lakhs, but had not filed his return of income for the year under consideration, initiated proceedings under section 147 of the Act. Notice under section 148 of the Act, dated 22/11/2017 was served upon the assessee. However, the assessee failed to comply with the notices and did not file his return of income in response thereto.

3.

During the course of the assessment proceedings, the AO issued notice under section 142(1) of the Act, wherein the assessee was called

3 ITA No.582/Viz/2025 Sathi Raju Relangi vs. ITO upon to furnish certain details. As the assessee failed to comply with the aforesaid notice, the AO proceeded to frame the assessment to the best of his judgment under section 144 of the Act. Accordingly, the AO vide order passed under section 144 r.w.s 147 of the Act, dated 28/12/2018 determined the income of the assessee at Rs. 70,00,070/- after making certain additions, viz., (i) unexplained cash deposits in bank account with Union Bank of India, Kakinada: Rs.40,87,000/-; (ii) unexplained cash deposits in bank account with Vijaya Bank, Dwarakanagar, Visakhapatnam: Rs.5,74,500/-; and (ii) undisclosed rent received from Shri Kalyana Chakravarthi Memorial Trust (TAN: HYDS29604B): Rs.33,40,817/- (before allowing statutory deduction under section 24(a) of the Act).

4.

Aggrieved, the assessee carried the matter in appeal before the CIT(A). However, as there was a delay of 400 days in filing the appeal, the assessee had filed a petition for condonation of the delay, submitting that the delay occurred on account of continuous medical problems and other unavoidable circumstances. The CIT(A), however, was not satisfied with the explanation of the assessee and dismissed the appeal in limine without adverting to and adjudicating the issues on merits.

5.

The assessee aggrieved by the order of the CIT(A) has carried the matter in appeal before us.

4 ITA No.582/Viz/2025 Sathi Raju Relangi vs. ITO 6. We have heard the Ld. Authorized Representatives of both parties, perused the orders of the authorities below and considered the judicial pronouncements pressed into service by the Ld. AR.

7.

Shri I Kama Sastry, CA, the Ld. Authorized Representative (for short, “AR”) of the assessee, at the threshold of hearing, submitted that the CIT(A) ought to have adopted a liberal and justice-oriented approach while considering the petition for condonation of delay. It was submitted that the assessee could not effectively pursue the appellate proceedings due to medical and personal difficulties and that substantial justice should prevail over technical considerations. The Ld. AR further submitted that the CIT(A) had dismissed the appeal without examining the merits of the additions made by the AO.

8.

Shri K Prasad, the Learned Senior Departmental Representative (for short, “Ld. Sr-DR”) supported the orders of the authorities below. The Ld. DR submitted that as there was an inordinate delay in filing the appeal before the CIT(A), he had, in the absence of any justifiable reason leading to the delay, rightly dismissed the same as not maintainable.

9.

We have given thoughtful consideration to the explanation of the Ld. AR regarding the reason for the delay in filing the appeal before the CIT(A).

5 ITA No.582/Viz/2025 Sathi Raju Relangi vs. ITO 10. Admittedly, the CIT(A) has dismissed the appeal solely on the ground of delay without adjudicating the issues on merits. We notice that the assessment itself was completed ex parte under section 144 r.w.s 147 of the Act, and substantial additions were made by the AO. At the threshold, we may herein observe that not only the delay involved in the appeal is inordinate, but also the conduct of the assessee, wherein he had already suffered an ex parte assessment, at the first blush, reveals his lackadaisical approach to the income-tax proceedings. However, the medical records as have been placed on our record, prima facie support the Ld. AR’s contention that both the ex parte assessment before the AO and also the delay in filing the appeal before the CIT(A) had occurred because of the ill health of the assessee, who, during the relevant period, was suffering from a cardiac problem.

11.

In our considered opinion, the appellate authorities are expected to adopt a pragmatic, liberal, and justice-oriented approach while dealing with applications seeking condonation of delay, particularly where substantial rights of parties are involved. Our view is supported by the judgment of the Hon’ble Supreme Court in the case of Vidya Shankar Jaiswal v. ITO (2025) 305 Taxman 83 (SC), wherein the Hon’ble Apex Court had observed that courts should adopt a justice-oriented, liberal approach when condoning procedural delays in tax appeals, rather than

6 ITA No.582/Viz/2025 Sathi Raju Relangi vs. ITO dismissing them on technical grounds. The Court set aside the lower court orders that had refused to condone a 166-day delay, and directed the tribunal to hear the appeal on the merits.

12.

Considering the totality of facts and circumstances of the case , we condone the delay in filing the appeal before the CIT(A), subject to imposition of cost of Rs. 10,000/-, which the assessee shall, within fifteen days of receipt of this order, deposit with the “Telangana State Legal Services Authority Fund account”. Consequently, the impugned order of the CIT(A) is set aside, and the matter is restored to the file of the CIT(A) with a direction to adjudicate the appeal afresh on merits in accordance with law after providing a reasonable opportunity of being heard to the assessee.

13.

Before parting, we may herein observe that as the matter has been restored to the file of the CIT(A) for fresh adjudication, we are not expressing any opinion on the merits of the additions made by the AO, and all grounds are left open.

14.

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

7 ITA No.582/Viz/2025 Sathi Raju Relangi vs. ITO Order pronounced in the open court on 13th May, 2026.

Sd/- Sd/- (OMKARESHWAR CHIDARA) (RAVISH SOOD) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated 13th May, 2026 OKK / SPS

Copy to:

S.No Addresses 1 SATHI RAJU RELANGI 9-20-1, SREE BHAVANI HOUSE, SAMPATH VINAYAK TEMPLE ROAD, CBM COMPOUND, Visakhapatnam, Andhra Pradesh-530003 2 INCOME-TAX OFFICER, WARD-3(3) INFINITY TOWERS, SANTHI PURAM, VISAKHAPATNAM, Visakhapatnam, Andhra Pradesh-530016 3 The Pr. Commissioner of Income Tax, Visakhapatnam. 4 The DR, ITAT, Visakhapatnam Bench 5 Guard File

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