HARI BABU POTLA,GUNTUR vs. ITO,WARD-2(1), GUNTUR

ITA 407/VIZ/2026Status: DisposedITAT Visakhapatnam21 August 2026AY 2016-1719 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the actual escaped income was less than Rs. 50 lakhs, the notice issued under Section 148 after three years from the end of the assessment year was barred by limitation. Consequently, the reassessment proceedings were quashed.

What were the facts?

The Assessing Officer (AO) reopened the assessee's assessment for AY 2016-2017 based on information of bank deposits totaling Rs. 50 lakhs. However, it was later admitted that one of the deposits of Rs. 37,50,000/- did not belong to the assessee, leaving the actual disputed amount at Rs. 12,50,000/-.

What were the issues?

Whether the reassessment proceedings initiated by the AO were barred by limitation due to the actual escaped income being less than Rs. 50 lakhs, making the Section 148 notice invalid.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 149(1),Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM DB BENCH VISAKHAPATNAM

Before: SHRI VIJAY PAL RAO & SHRI MANJUNATHA G.

Hearing: 17.08.2026Pronounced: 21.08.2026

PER VIJAY PAL RAO, VICE PRESIDENT :

This appeal by the Assessee is directed against the Order of the learned CIT(A)-National Faceless Assessment Centre [in short “NFAC”], Delhi, for the assessment year 2016- 2017. 2 ITA.No.407/Viz./2026

2.

The assessee has raised the following grounds of appeal:

1.

The order passed by the Ld.CIT(A) u/s. 250 of the IT Act, dt. 23.02.2026 is contrary to the facts of the case and provisions of law, and hence is liable to be set aside.

2.

The Ld. CIT(A) erred both in law and on facts in setting aside the assessment order passed u/s. 147 r.w.s 144 dt. 26.02.2024 to the file of the AO, instead of adjudicating the issues on merits as well as on legal grounds raised by the appellant

The order continues below.

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