Satyanarayana Reddy Manda, Hyderabad V. ITO Ward-9(4), Hyderabad

ITA 232/Hyd/2022

AI Insights

The case involves Satyanarayana Reddy Manda, the appellant, who appealed against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment year 2017-18. The primary contention was the ex parte nature of the assessment under section 144 of the Income Tax Act, 1961, due to the assessee's failure to provide necessary evidence and his absence during the initial hearings. The Tribunal noted the assessee's health issues as a reason for the delay in filing the appeal and acknowledged the lack of opportunity given to the assessee to present his case with the relevant materials. Consequently, the Tribunal decided to set aside the previous orders and remand the case for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133227 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 21-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 05-06-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 144

Judgement Text

आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER ITA No.232/Hyd/2022 Assessment Year: 2017-18 Satyanarayana Reddy Manda, C/o. Katarapati & Associates, 1-1-298/2/B/3, 1 st Floor, Ashok Nagar, Street No.1, Hyderabad – 500 020. PAN : AFZPM3352B. Vs. The Income Tax Officer, Ward – 9(4), Hyderabad. (Appellant) (Respondent) Assessee by: Shri C .A. K. Sai Prasad Revenue by: Shri Kumar Adithya Date of hearing: 22.02.2023 Date of pronouncement: 28.02.2023 आदेश / ORDER PER K. NARASIMHA CHARY, J.M : Aggrieved by the order(s) dated 22.07.2022 passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of Satyanarayana Reddy Manda, (“the assessee”) for the assessment year 2017-18, assessee preferred this appeal. ITA No.232/Hyd/2022 Page 2 of 5 2. This appeal is filed with a delay of 8 days and the reason attributed for the delay is that the assessee was suffering from severe back pain and was advised bed rest. Ld. DR fairly concedes condoning the delay and recording the same we condone the delay and proceed to dispose of the appeal. 3. At the outset, it is submitted that the learned Assessing Officer in the process of making the addition in paragraph No.7 of the order observed that the assessee did not furnish any supporting evidence in respect of his claim, and therefore, basing on the material available on record, assessment has to be made under section 144 of the Income Tax Act, 1961 (for short “the Act”) as per the best judgement of the learned Assessing Officer. It is, therefore, clear that for all practical purposes, the assessment order dated 9/12/2019 is an order passed under section 144 of the Act. Even before the 1 st appellate authority, the assessee did not enter appearance. Looking at the absence of the assessee, the 1 st appellate authority referred to the material available before him and decided the appeal against the assessee. 4. It is the submission of the Ld. AR that the assessee could secure the relevant information subsequent to the passing of the assessment order and since the assessee could not issue the notice, the assessee could not enter appearance before the 1 st appellate authority. Ld. AR, therefore, prayed that if an opportunity is granted, the assessee is ready to produce all the relevant material before the authorities and the matter disposed of on merits. Ld. DR submitted that sufficient opportunity has already been provided to the assessee, and therefore, there is no point in assessee seeking further opportunity. ITA No.232/Hyd/2022 Page 3 of 5 5. We have gone through the record in the light of the submissions made on either side. It is a fact that in the assessment order itself, the learned Assessing Officer observed that because the assessee failed to furnish the requisite information, here no option but to proceed to complete the assessment ex parte under section 144 of the Act as per the best judgement basing on merits of the case and information available with the Department. Insofar as the proceedings before the Ld. CIT(A) are concerned, it is the submission of the Ld. AR that the notices were issued through ITBA portal and, therefore, the assessee could not notice the same. 6. Be that as it may, assessee does not stand to gain by allowing the matter is to be disposed of ex parte and all the endeavour of the Revenue is to determine the correct tax liability of the assessee. Having regard to the facts and circumstances of the case, we are of the considered opinion that it would be in the interest of justice to afford an opportunity to the assessee to dispose of the matter on merits. 7. With this view of the matter, we set aside the orders of the authorities below and restore the issue to the file of the learned Assessing Officer for taking a view according to law after affording an opportunity to the assessee. We make it clear that it is the last and final opportunity to the assessee, and if he fails to file the same, no reasons would be entertained further. ITA No.232/Hyd/2022 Page 4 of 5 8. In the result, appeal of the assessees treated as allowed for statistical purpose. Order pronounced on this the 28 th day of February, 2023. Sd/- Sd/- Sd/- (RAMA KANTA PANDA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 28/02/2023 TYNM/SR.PS ITA No.232/Hyd/2022 Page 5 of 5 Copy forwarded to : S.No Addresses 1. Satyanarayana Reddy Manda, C/o. Katarapati & Associates, 1-1-298/2/B/3, 1st Floor, Ashok Nagar, Street No.1, Hyderabad – 500 020. 2 The Income Tax Officer, Ward – 9(4), Hyderabad. 3 DR, ITAT, Hyderabad Benches 4 Guard File. By Order