GRK CONSTRUCTIONS,VISAKHAPATNAM vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-3(1), VISAKHAPATNAM

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ITA 415/VIZ/2025Status: DisposedITAT Visakhapatnam14 August 2025AY 2014-15Bench: SHRI DUVVURU RL REDDY, HON'BLE (Vice President), SHRI S BALAKRISHNAN, HON'BLE (Accountant Member)8 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(A) was justified in passing ex-parte orders due to the assessee's repeated non-appearance. However, considering the assessee's request and in the interest of justice, the Tribunal remitted both the quantum and penalty appeals back to the CIT(A) for fresh adjudication on merits, providing one final opportunity to the assessee, while cautioning the assessee to cooperate.

What were the facts?

The assessee, GRK Constructions, filed its ITR for AY 2014-15. A subsequent search operation by DG GST Intelligence revealed suppressed sales, improper books of accounts, and alleged "on-money" receipts, leading to the reopening of the assessment under Section 148. The Assessing Officer and subsequently the CIT(A) passed ex-parte orders, confirming a significant addition to income and levying a penalty, due to the assessee's non-compliance with notices.

What were the issues?

1. Whether the CIT(A) was justified in passing ex-parte orders despite the assessee's non-compliance. 2. Validity of the reassessment proceedings initiated under Section 148. 3. Justification of the sustained addition for alleged on-money receipts and the levied penalty under Section 271(1)(c).

Which sections of the Income-tax Act were involved?

Section 143(1),Section 143(3),Section 148,Section 142(1),Section 147,Section 144,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

Hearing: 11/08/2025

आदेश की �ितिलिप अ�ेिषत /Copy of the order forwarded to:- 1. �नधा�रती/ The Assessee – GRK Constructions, D.No. 1-83-23/1, Plot No.34, Renuka Nivas, Sector-5, MVP Colony, Visakhapatnam, Andhra Pradesh – 530017. 2. राज�व/The Revenue – The Asst. Commissioner of Income Tax, Circle- 3(1), O/o. ITO, Infinity Towers, Sankaramatam Road, Visakhapatnam, Andhra Pradesh – 530016. 3. The Principal Commissioner of Income Tax, 4.आयकर आयु�त (अपील)/ The Commissioner of Income Tax (Appeals), 8 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, �वशाखापटणम/ DR, ITAT, Visakhapatnam 6.गाड� फ़ाईल / Guard file आदेशानुसार / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam

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