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Facts
The assessee appealed the CIT(A)'s order for A.Y. 2017-18, which upheld a Rs. 9,50,000 addition claimed by the assessee to be from fish culture sales and a bank loan. The appeal alleged the CIT(A)'s order was erroneous, ignored evidence, and contained irrelevant facts pertaining to other persons.
Held
The Tribunal found the CIT(A)'s order contained observations incongruous with the assessee's facts and lacked proper appreciation. Therefore, the order was set aside, and the matter was remanded to the CIT(A) for fresh adjudication after a proper examination of facts and affording the assessee a reasonable opportunity to be heard and present evidence.
Key Issues
Whether the CIT(A)'s order, upholding an addition of Rs. 9,50,000, was legally sustainable given the appellant's claims of factual errors, non-consideration of evidence, and inclusion of irrelevant information, necessitating a remand for fresh adjudication.
Sections Cited
143(3)
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Income Tax Appellate Tribunal, Hyderabad ‘ SM ‘ Bench, Hyderabad
Before: Shri Ravish SoodShri Madhusudan Sawdia
(िनधा�रण वष�/Assessment Year: 2017-18) Shri Goutham Kumar Vs. Income Tax Officer Namburi, Hyderabad Ward 12(3) PAN:AGOPN3469J Hyderabad (Appellant) (Respondent) िनधा��रती �ारा/Assessee by: Shri Krishna Rao, CA राज� व �ारा/Revenue by:: Shri V Ravish Bhatt, Sr.DR सुनवाई की तारीख/Date of hearing: 27/10/2025 घोषणा की तारीख/Pronouncement: 31/10/2025 आदेश/ORDER Per Madhusudan Sawdia, A.M.:
This appeal is filed by Shri Goutham Kumar Namburi (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), (“Ld. CIT(A)”), dated 21.03.2025 for the A.Y. 2017-18.
The assessee has raised the following grounds of appeal:
3. The brief facts of the case are that the assessee had filed an appeal before the Ld. CIT(A) against the order passed by the Learned Assessing Officer (“Ld. AO”) under section 143(3) of the Income Tax Act, 1961 (“the Act”) for the Assessment Year 2017–18, dated 16.09.2019. The Ld. CIT(A) partly allowed the appeal of the assessee. Aggrieved by the said order, the assessee has preferred the present appeal before this Tribunal.
During the course of hearing, the Learned Authorised Representative (“Ld. AR”) invited our attention to page nos.1 to 4
Page 2 of 4 of the order of the Ld. CIT(A) and submitted that the relevant facts and details discussed therein do not pertain to the assessee but to some other person altogether. It was submitted that, the observation of the Ld. CIT(A) about the case of the assessee are contained at one single para i.e. para no.5.1 of the order of the Ld. CIT(A) . The Ld. AR therefore contended that the Ld. CIT(A) has passed the appellate order without proper appreciation of facts or application of mind, and consequently, the order suffers from serious infirmity. It was thus prayed that the issue may be remanded back to the file of the Ld. CIT(A) for fresh adjudication after proper examination of facts and after affording one more opportunity to the assessee to furnish further evidences and submissions in support of his claim.
Per contra, the Learned Departmental Representative (“Ld. DR”) objected to the remand relying on the order of the lower authorities.
We have heard the rival submissions and perused the material available on record, including the order of the Ld. CIT(A). On careful examination, we find that the observations recorded by the Ld. CIT(A) in several parts of his order indeed appear incongruous with the assessee’s facts. It prima facie indicates that the Ld. CIT(A) may not have properly appreciated the factual matrix of the case before him. Considering the above, and in the interest of substantial justice, we deem it fit and proper to set aside the impugned order of the Ld. CIT(A) and restore the matter to his file with a direction to re-adjudicate the issue afresh after proper appreciation and recording of the relevant facts. The Ld. CIT(A) is directed to pass a speaking order on merits after affording a reasonable opportunity of being heard to the assessee.
Page 3 of 4 The assessee shall be at liberty to file any further submissions, explanations, and evidences in support of his claim before the Ld. CIT(A). At the same time, the assessee is also directed not to seek unnecessary adjournments and to cooperate fully in the appellate proceedings to facilitate expeditious disposal of the appeal.
In the result, the appeal of the assessee is allowed for statistical purposes.