GARIMELLA VENKATA APPALA SARMA,VISAKHPATNAM V. INCOME-TAX OFFICER, WARD (INTERNATIONAL TAXATION), VISAKHAPATNAM

ITA 149/VIZ/2025

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The case involves Garimella Venkata Appala Sarma, a Non-Resident Individual, who appealed against the final assessment order passed under section 144 r.w.s. 144C(13) of the Income Tax Act, 1961 for the Assessment Year 2018-19. The AO had added an amount of Rs. 1,13,53,700 as unexplained money under section 69A of the Act, based on the assessee's failure to respond to notices regarding undisclosed investments in time deposits with HDFC Bank. The Dispute Resolution Panel (DRP) upheld the AO's decision after the assessee submitted additional evidences, which were deemed insufficient. The Tribunal, considering the additional evidences, remitted the matter back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315508 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Competent authority
• Section: 148; 144

Judgement Text

"आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM श्री िीरिल्ली दुर्ाा राि, न्याधयक सदस्य एिं श्री एस बालाक ृष्णन, लेखा सदस्य क े समक्ष BEFORE SHRI VEERAVALLI DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./I.T.A.No.149/VIZ/2025 (निर्धारणवर्ा/ Assessment Year: 2018-19) Garimella Venkata Appala Sarma Flat No. L-523, MK Gold Coast Yendada, Visakhapatnam – 530045 Andhra Pradesh [PAN: ANPPG5223K] v. Income Tax officer – Ward – (International Taxation) Income Tax office Infinity Towers, Sankaramatam Road Visakhapatnam – 530016 (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व / Assessee Represented by : Shri GVN Hari, Advocate राजस्व का प्रतततितित्व/ Department Represented by : Dr. Satyasai Rath, CIT(DR) सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 08.04.2025 घोर्णध की तधरीख / Date of Pronouncement : 13.05.2025 आदेश /O R D E R PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER: 1. This appeal is filed by the assessee against the final assessment order passed under section 144 r.w.s. 144C(13) of the Income Tax Act, 1961 (in short ‘Act’) dated 21.01.2025 vide DIN & Order No. ITBA/AST/S/144/2024- 25/1072391196(1) for the A.Y. 2018-19. I.T.A.No.149/VIZ/2025 Garimella Venkata Appala Sarma Page No. 2 2. Briefly stated facts of the case are, assessee is a Non-Resident Individual and based on the Risk Management Strategy (RMS) data, it was noticed that assessee has made investment in time deposits with HDFC Bank during the F.Y.2017-18. It was also noticed that assessee has not filed return of income for the A.Y. 2018-19. Thereafter, Ld. Assessing Officer [hereinafter in short “Ld.AO\"] following the procedure laid down under section 148A of the Act issued a show-cause notice to explain why the income has not escaped the assessment. Since assessee did not respond to the show-cause notice, Ld. AO considering the material on record passed order under section 148A(d) of the Act on 02.04.2022 with a prior approval of the Competent Authority. Thereafter, notice under section 148 of the Act was issued on 03.04.2022. Assessee has not filed return of income in response to the notice issued under section 148 of the Act. Since assessee did not respond to any of the notices, Ld. AO proposed to complete the assessment by adding an amount of Rs. 1,13,53,700/- as unexplained money under section 69A of the Act by issuing a draft assessment order under section 144C of the Act Vide DIN & Order No. ITBA/AST/F/144C/2023-24/1062057828(1) dated 05.03.2024. 3. Assessee, thereafter filed his objections before Dispute Resolution Panel (DRP) on 04.04.2024. DRP sought for the Remand Report from the Ld. AO with respect to the additional evidences submitted by the assessee. Ld. AO submitted the Remand Report on 29.11.2024. Considering the submissions, DRP agreed I.T.A.No.149/VIZ/2025 Garimella Venkata Appala Sarma Page No. 3 with the findings of the Ld. AO by dismissing the objections raised by the assessee. Based on the directions of the DRP, Ld. AO passed the final assessment order giving effect to the direction of the DRP on 21.01.2025. 4. On being aggrieved by the final assessment order, assessee filed an appeal before us by raising following grounds of appeal: - “1. The order of the hon'ble Dispute Resolution Panel -1, Bengaluru is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.1,13,53,700 made by the assessing officer u/s 69A of the Act towards unexplained money. 3. The learned Commissioner of Income Tax (Appeals) ought to have held that the provisions of S.115BBE of the Act are not applicable to the case of appellant. 4. Any other ground may be urged at the time of hearing.” 5. The only issue raised by the assessee is with respect to sustaining the addition of Rs. 1,13,53,700/- made by the Assessing Officer as unexplained money under section 69A of the Act. 6. On this ground, Ld. Authorised Representative [hereinafter “Ld.AR”] submitted that assessee has filed necessary evidences before the Tribunal and pleaded that these evidences may be remanded back to the file of the Ld. AO for fresh consideration and decide the case on merits. 7. Per contra, Ld. Departmental Representative [hereinafter in short “Ld.DR”] relied on the orders of the DRP. I.T.A.No.149/VIZ/2025 Garimella Venkata Appala Sarma Page No. 4 8. We have heard both the sides and perused the material available on record. It is an admitted fact that the assessee has not appeared before the Ld. AO but has filed certain additional evidences which was considered insufficient by the DRP, accordingly, DRP dismissed the objections raised by the assessee vide order dated 23.12.2024. The only plea raised before us by the Ld.AR is to provide one more opportunity to the assessee to submit the additional evidences substantiating the time deposits made in the HDFC Bank Account. The additional evidences are enclosed in paper book – 2 from Page No. 58 to 85. In the interest of justice, we consider it deem fit to remit the matter back to the file of Ld. AO to consider the additional evidences and decide the case on merits in accordance with law. We also direct the assessee to appear before the Ld. AO and submit the relevant details without seeking unnecessary adjournments. Accordingly, the ground raised by the assessee is allowed for statistical purposes. 9. Further, assessee has raised following additional grounds in his appeal: - “1. The notice dt.03.04.2022 issued u/s 148 of the Act is invalid as the same was issued by the JAO but not the FAO, in contravention of the provisions of S.151A of the Act and hence the notice is liable to be quashed as invalid. 2. The notice dt.03.04.2022 issued u/s 148 of the Act with the prior approval of PCIT in contravention of the provisions of S.151(ii) of the Act is liable to be quashed as invalid.” I.T.A.No.149/VIZ/2025 Garimella Venkata Appala Sarma Page No. 5 10. Since, original grounds are adjudicated by remitting the matter back to the file of the Ld. AO, additional grounds of appeal filed by the assessee becomes infructuous. Accordingly, the same are not adjudicated. 11. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 13th May, 2025. Sd/- (श्री िीरिल्ली दुर्ाा राि) (VEERAVALLI DURGA RAO) न्याधयक सदस्य/JUDICIAL MEMBER Sd/- (एस बालाक ृष्णन) (S. BALAKRISHNAN) लेखा सदस्य/ACCOUNTANT MEMBER Dated: 13.05.2025 Giridhar, Sr.PS आदेश की प्रनतनलनपअग्रेनर्त/ Copy of the order forwarded to :- 1. निर्धाररती/ The Assessee : Garimella Venkata Appala Sarma Flat No. L-523, MK Gold Coast Yendada, Visakhapatnam – 530045 Andhra Pradesh 2. रधजस्व/ The Revenue : Income Tax officer – Ward – (International Taxation) Income Tax office Infinity Towers, Sankaramatam Road Visakhapatnam – 530016 3. The Principal Commissioner of Income Tax 4. नवभधगीयप्रनतनिनर्, आयकरअपीलीयअनर्करण, नवशधखधपटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गधर्ाफ़धईल / Guard file //True Copy// आदेशधिुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam "