KANDULA VENKATESWARLU,NALGONDA vs. INCOME TAX OFFICER, WARD-1, SURYAPET

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ITA 2039/HYD/2018Status: DisposedITAT Hyderabad15 November 2019AY 2013-143 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that both the assessment order and the CIT(A)'s order were ex-parte. Considering the significant addition, the Tribunal decided to set aside the matter to the AO for a fresh assessment.

What were the facts?

The assessee failed to appear before the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) (CIT(A)), leading to an ex-parte assessment order. The addition was made on account of unexplained cash deposits into the bank account.

What were the issues?

Whether the ex-parte assessment order passed due to non-appearance of the assessee should be set aside for a denovo assessment to provide a fair opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES “SMC”, HYDERABAD

Before: SMT. P. MADHAVI DEVI

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “SMC”, HYDERABAD

BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER I.T.A. No. 2039/HYD/2018 Assessment Year: 2013-14 Kandula Venkateswarlu, Income Tax Officer, Kodad Vs Ward-1, [PAN: BTKPK4256J] Suryapet (Appellant) (Respondent) For Assessee : Shri Y.V.Bhanu Narayan Rao, AR For Revenue : Smt. E.A. Hangal, DR Date of Hearing : 13-11-2019 Date of Pronouncement : 15-11-2019 O R D E R This appeal filed by the assessee for the AY.2013-14, is directed against the order of the Commissioner of Income Tax (Appeals)–3, Hyderabad, dated 10-07-2018.

2.

At the outset, Ld.Counsel for the assessee submitted that the assessment order was passed u/s.144 of the Income Tax Act [Act] as the assessee had not appeared and even the CIT(A) has confirmed the order of the AO, only because the assessee was not able to substantiate the sources of cash deposits made into the bank account. Therefore, Ld.Counsel prayed that the assessment order may be set aside to the file of AO for Denovo assessment.

3.

Ld.DR was also heard.

:- 2 -: ITA No. 2039/Hyd/2018

4.

I find that the assessment order as well as the order of Ld.CIT(A) are ex-parte the assessee. The addition is of Rs.25,59,101/-, which is the total of the deposits made into the bank account. Therefore, I am inclined to set aside the issue to the file of AO with a direction to re-do the assessment Denovo in accordance with law, after giving the assessee a fair opportunity of hearing. The assessee is also directed to co-operate with the AO for early completion of assessment of his income, by providing the necessary details.

5.

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

Order pronounced in the open court on 15th November, 2019

Sd/- (P. MADHAVI DEVI) JUDICIAL MEMBER Hyderabad, Dated: 15-11-2019 TNMM

:- 3 -: ITA No. 2039/Hyd/2018

Copy to : 1. Kandula Venkateswarlu, C/o.Y.V.Bhanu Narayan Rao, Chartered Accountant, 10-2-195, Opp: Deccan Club, East Marredpally, Secunderabad. 2. Income Tax Officer, Ward-1, Suryapet.

3.

CIT(Appeals)-3, Hyderabad.

4.

Pr.CIT-3, Hyderabad.

5.

D.R. ITAT, Hyderabad.

6.

Guard File.

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