AVVA SITARAMA RAO,HYDERABAD vs. DCIT., CENTRAL CIRCLE- 2(4), 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) – 12,

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Avva Sitarama Rao

Hyderabad, dated 30.03.2025 relating to the assessment year
2015-16. 2. The brief facts of the case are that, a search and seizure operation under Section 132 of the Income Tax Act, 1961 was conducted in the case of the assessee and warrant of authorization was executed on 23.01.2015. Thereafter, the case was centralized to the Central Circle, Hyderabad, vide order passed under Section 127 of the Act dated 10.03.2016. Subsequently, a notice u/s 142(1) of the Income Tax Act, 1961
was issued on 21.10.2016 and 02.11.2016. In response to notices issued under Section 142(1) of the Act dated 28.03.2016, the assessee neither filed return of income nor furnished the requisite details. Therefore, the A.O. proceeded to complete the assessment under Section 144 of the Act, based on the material available on record.
3. The A.O., after considering the material gathered during search and the information available on record, observed that, the assessee had shown income from salary, business, house property and other sources in the preceding year, and accordingly estimated the current year’s income by applying a 10% increase

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Avva Sitarama Rao over the figures of the earlier year. The A.O. further noticed that, the assessee had received a sum of Rs. 9,89,956/- from SBI Life
Insurance and sold property for Rs. 4,48,20,000/- during the year, which were not disclosed to tax. Since the assessee failed to offer any explanation or supporting evidence for the same, the A.O. treated the said amounts as undisclosed income and completed the assessment under Section 144 of the Act.
4. Aggrieved by the assessment order, the assessee preferred appeal before the Ld. CIT(A).
5. Before the Ld. CIT(A), the assessee submitted that the assessment was completed ex-parte under Section 144 of the Act without proper opportunity and that the additions were not based on any incriminating material, relying on the decision of the Hon’ble Supreme Court in Pr. CIT vs. Abhisar Buildwell Pvt. Ltd.
6. The Ld. CIT(A), after considering the submissions of the assessee, held that the said decision was not applicable since the assessment was completed under Section 144 of the Income Tax
Act, 1961 and not under Section 153A r.w.s. 144 of the Act.
Referring to the amendment to Section 251 of the Act effective

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Avva Sitarama Rao from 01.10.2024, empowering the Ld. CIT(A) to set aside assessments made under Section 144 of the Act, the Ld. CIT(A) set aside the assessment order and restored the matter to the file of the A.O. for de novo adjudication after providing due opportunity of hearing to the assessee.
7. Aggrieved by the order of Ld. CIT(A), the assessee is now in appeal before the Tribunal.
8. The learned counsel for the assessee Shri P. Murali Mohan
Rao, made a statement at the Bar that, the appeal filed by the assessee before the Ld. CIT(A) has been set aside to the file of the A.O. for making a fresh assessment. Therefore, the appeal filed by the assessee may be remanded to the file of the A.O. with similar directions to reconsider the issue.
9. Dr. Narendra Kumar Naik, the Ld. CIT-DR for the Revenue fairly agreed that, since the assessment order is ex parte passed under Section 144 of the Income Tax Act, 1961, the matter may be remanded to the file of the A.O. for reconsideration.
10. We have heard both parties, perused the material available on record and had gone through the orders of the authorities below.

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Avva Sitarama Rao

We find that, the Ld. CIT(A) has remanded the issue back to the file of the A.O. for making a fresh assessment after considering the fact that, the assessment before the A.O. was ex parte. Since the Ld. CIT(A) has remanded the issue to the file of the A.O., the present appeal filed by the assessee is not maintainable. However, considering the arguments of the Learned Counsel for the assessee and also the Ld. CIT-DR for the Revenue, we set aside the order of the Ld. CIT(A) and restore the issue back to the file of the A.O. with a direction to reconsider the issue after providing reasonable opportunity of hearing to the assessee. Needless to say, the assessee shall furnish all the relevant details in support of his case as and when the appeal is called up for hearing.
11. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 14th November, 2025. (श्री रवीश सूद)
(RAVISH SOOD)
न्यायिक सदस्य/JUDICIAL MEMBER (मंजूिधथ जी)
(MANJUNATHA G.)
लेखा सदस्य/ACCOUNTANT MEMBER

Hyderabad, dated 14.11.2025. TYNM/sps

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Avva Sitarama Rao

आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-

आदेशधिुसधर / BY ORDER

Sr. Private Secretary
ITAT, Hyderabad