KRISHNAM RAJU KANUMURI,HYDERABAD vs. ITO, WARD-16(1), HYDERABAD

ITA 1/HYD/2026Status: DisposedITAT Hyderabad08 October 2026AY 2022-20234 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the interests of justice would be served by giving the assessee an opportunity to present his case before the Ld. CIT(A). The Tribunal set aside the impugned order of the Ld. CIT(A) and restored the matter to the file of the Ld. CIT(A) for fresh adjudication on merits. The Ld. CIT(A) was directed to grant the assessee an opportunity to present his case and to submit additional evidence to prove the identity and creditworthiness of the creditors and the genuineness of the transactions. The Ld. CIT(A) was also empowered to call for a remand report from the AO if deemed fit, after considering the assessee's submissions and evidence, and then decide the matter in accordance with law. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Krishnam Raju Kanumuri, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench, against the order of the Learned Commissioner of Income Tax (Appeals) (Ld. CIT(A)) dated 13/10/2025 for Assessment Year 2022-23. There was a one-day delay in filing the appeal, which was condoned. The assessee's grounds of appeal challenged the Ld. CIT(A)'s confirmation of an addition made by the Assessing Officer (AO) on account of investment in property from unexplained sources. The assessee had claimed the source of investment was unsecured loans, but failed to provide satisfactory evidence of the creditors' identity, creditworthiness, and genuineness of the transactions to the AO and Ld. CIT(A).

What were the issues?

1. Whether the Learned Commissioner of Income Tax (Appeals) erred in law and on facts in confirming the addition made by the Assessing Officer on account of investment in property from unexplained sources, contrary to the assessee's plea of unsecured loans, under Section 68 of the Income Tax Act, 1961, by not properly appreciating that the loans were from identifiable parties reflected in bank statements. Assessee's Contention: The assessee argued that the loans were from identifiable parties and reflected in bank statements. Due to his father's serious illness and subsequent death, he could not properly pursue the case before the lower authorities and furnish necessary confirmations, ITRs, and other evidence to prove the identity, creditworthiness of creditors, and genuineness of transactions. He sought an opportunity to present his case and furnish evidence before the Ld. CIT(A). Revenue's Contention: The Revenue relied upon the findings of the lower authorities.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES, HYDERABAD

Before: SHRI SANJAY GARG, HON’BLE & SHRI MADHUSUDAN SAWDIA, HON’BLE

Per Sanjay Garg, Judicial Member:

The present appeal has been appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as “Ld. CIT(A)”), dated 13/10/2025 for the Assessment Year (AY) 2022-23. 2. There is a delay of 01 day in filing the present appeal. In support, an application for condonation

The order continues below.

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