INCOME TAX OFFICER, GUDIWADA vs. DANDU MADHU VARMA, BHUJABALAPATNAM

ITA 40/VIZ/2025Status: DisposedITAT Visakhapatnam06 August 2025AY 2022-23Bench: SHRI VIJAY PAL RAO (Vice President), SHRI MANJUNATHA G. (Accountant Member)20 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) violated Rule 46A of the IT Rules by admitting additional evidence without providing the Assessing Officer an opportunity to comment. Therefore, the CIT(A)'s order could not be upheld.

What were the facts?

The assessee, involved in fish and prawn trade, had a large turnover but did not get his books audited. The Assessing Officer made additions to commission income and disallowed expenses due to lack of explanation. The CIT(A) deleted the commission income addition and reduced the expense disallowance, admitting additional evidence without referring it back to the AO.

What were the issues?

Whether the CIT(A) erred by admitting additional evidence without giving the Assessing Officer an opportunity for remand report, and whether the additions made by the AO were justified.

Which sections of the Income-tax Act were involved?

Section 44AB,Section 143(2),Section 142(1),Section 143(3),Section 144B

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Before: SHRI VIJAY PAL RAO & SHRI MANJUNATHA G.

Hearing: 31.07.2025Pronounced: 06.08.2025

Heard together (2 matters)

ITA.No.129/Vizag/2025
ITA.No.40/Vizag/2025

Read from the judgment's own cause title. This page is filed under one of them.

PER MANJUNATHA G. :

The Assessee and the Revenue are filed cross- appeals against the order dated 25.11.2024, of the learned CIT(A)-National Faceless Appeal Centre [in short “NFAC], Delhi, relating to the assessment year 2022-2023. 2. Brief facts of the case are that, the assessee is an individual and filed his return of income on 07.03.2023 dec

The order continues below.

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