INCOME TAX OFFICER, WARD 11(1), HYDERABAD V. ABHI CONSTRUCTIONS, HYDERABAD

ITA 1021/HYD/2024

AI Insights

The case involves an appeal by the Income Tax Officer against the order of the CIT (A) which had deleted the addition made on account of unsecured loans by the Assessing Officer. The Assessing Officer had initially made the addition due to the assessee's failure to prove the identity, creditworthiness of the creditors, and the genuineness of the transactions. The CIT (A) accepted the additional evidences provided by the assessee without proper confrontation to the Assessing Officer, leading to a violation of natural justice. The Tribunal, after considering the submissions and the documentary record, decided to remand the case for a fresh examination of the additional evidences.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26866 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside; Additional evidence; Corroborative evidences; Onus to prove; Principle of natural justice
• Section: 142(1)

Judgement Text

" ITA No 1021 of 2024 Abhi Constructions Page 1 of 5 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.1021/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2021-22) Income Tax Officer Ward 11(1) Hyderabad Vs. Abhi Constructions Bachupally, Hyderabad PAN:ABDFA8081H (Appellant) (Respondent) राज̾ व Ȫारा/Revenue by:: Shri Srinath Sadanala, DR िनधाŊįरती Ȫारा/Assessee by: N O N E सुनवाई की तारीख/Date of hearing: 08/01/2025 घोषणा की तारीख/Pronouncement: 09/01/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal by the Revenue is directed against the order dated, 22/08/2024 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2021-22. 2. The Revenue has raised the following grounds: ITA No 1021 of 2024 Abhi Constructions Page 2 of 5 3. None appeared on behalf of the assessee when this appeal was called for bearing. It transpires from the record that the notices issued to the assessee through RPAD have been received back unserved with the remark of the postal authorities that “addressee has left”. Thereafter, the Bench directed the service of notice through the Assessing Officer vide order dated 5/12/2024. The learned DR has filed the report of the Assessing Officer dated 30/12/2024 effecting the service of the notice to the assessee wherein the Assessing Officer has reported that the notice was served to the assessee through e-mail which was successfully delivered to the mail id of the assessee. Accordingly, in view of the fact that despite repeated notices, the assessee has ITA No 1021 of 2024 Abhi Constructions Page 3 of 5 neither responded nor appeared/represented in the appeal filed by the assessee, we propose to dispose of this appeal ex-parte. 4. The learned DR has submitted that the Assessing Officer has made addition on account of unsecured loans during the year under consideration when the assessee has failed to discharge its onus to prove the identity and creditworthiness of the creditors as well as the genuineness of the transaction. He has referred to the assessment order and submitted that the assessee has failed to produce supporting evidence in support of the claim and consequently the addition was made by the Assessing Officer. Before the learned CIT (A), the assessee has filed additional evidences in the shape of confirmation of creditors, ledger extracts of loan creditors and bank account statements. The learned CIT (A) deleted the addition by considering the additional evidences filed by the assessee without confronting the same to the Assessing Officer. Therefore, there is a violation of principles of natural justice under Rule 46A of the I.T Rules, 1962. Thus, the learned DR has pleaded that the impugned order of the learned CIT (A) should be set aside and the matter may be remanded to the record of the Assessing Officer for verification and examination of the additional evidences filed by the assessee. 5. Having considered the submissions of the learned DR as well as perusal of documentary record, we find that the Assessing Officer issued various notices u/s 142(1) calling the assessee to submit the supporting details and documents in respect of unsecured loans for which entries were recorded in the books of account of the assessee. Except PAN of the loan creditors, the assessee did not file any other supporting evidences ITA No 1021 of 2024 Abhi Constructions Page 4 of 5 which were called for by the Assessing Officer including the ITR, ledger account to prove the creditworthiness of the loan creditors. Accordingly, the Assessing Officer made the addition of Rs.2,18,85,918/- u/s 68 of the I.T. Act, 1961. The learned CIT (A) has deleted the addition by considering the bank account statement and confirmations of the loan creditors. It is manifest from the impugned order of the learned CIT (A) that the evidences/supporting documents filed by the assessee before the learned CIT (A) were not confronted to the Assessing Officer or forwarded to the Assessing Officer for his comments or remand report. Therefore, considering the additional evidences filed before the learned CIT (A) without confronting the same to the Assessing Officer is a clear violation of principles of natural justice as well as Rule 46A of the Income Tax Rules, 1962. Hence, in the facts and circumstances of the case, the impugned order of the learned CIT (A) is set aside and the matter is remanded to the record of the Assessing Officer for fresh adjudication after verification and examination of the additional evidences filed by the assessee. Needless to say, before passing the fresh order, the assessee be given an opportunity of hearing. 6. In the result, the appeal of the Revenue is allowed for statistical purposes. Order pronounced in the Open Court on 9th January, 2025. Sd/- Sd/- (MANJUNATHA, G) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 9th January, 2025 Vinodan/sps ITA No 1021 of 2024 Abhi Constructions Page 5 of 5 Copy to: S.No Addresses 1 Income Tax Officer Ward 11(1) Room No.507, 5th Floor, signature towers, Kondapur, Hyderabad 500084 2 Abhi Constructions, Villa No.247, Hills Colony, Near Keseneni Carego Bachupally, Ranga Reddy Distt. 500072 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "