Bal Reddy Kandunuri, Adilabad V. ACIT, Central Circle-2(4), Hyderabad

ITA 96/Hyd/2023

AI Insights

The case involves Shri Bal Reddy Kandunuri, who appealed against the orders of the Commissioner of Income Tax (Appeals)-12, Hyderabad, for the assessment years 2015-16 to 2019-20. The appeals were primarily based on the grounds that the notices were not properly served and that health issues post-COVID had hindered the assessee's ability to effectively prosecute the appeals. The Income Tax Appellate Tribunal, Hyderabad, after considering the submissions and the conduct of the assessee, decided to remand the case back to the CIT(A) with specific conditions aimed at ensuring the assessee's serious engagement in the proceedings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133305 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 12-03-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 05-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Set aside
• Section: 153A

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 आ.अपी.सं / ITA Nos. निर्धारण वर्ा / A.Y. अपीलधर्थी / Appellant प्रत्‍यर्थी / Respondent 95/Hyd/2023 2015-16 Sri Bal Reddy Kandunuri, Mancherial, [PAN: ALGPK5258D] Asst. Commissioner of Income Tax, Central Circle-2(4), Hyderabad 96/Hyd/2023 2016-17 97/Hyd/2023 2017-18 98/Hyd/2023 2018-19 99/Hyd/2023 2019-20 निर्धाररती द्वधरध/Assessee by: Shri P. Vinod, AR रधजस्‍व द्वधरध/Revenue by: Shri Jeevan Lal Lavidiya, CIT-DR सुिवधई की तधरीख/Date of hearing: 13/03/2023 घोर्णध की तधरीख/Pronouncement on: 16/03/2023 आदेश / ORDER PER K. NARASIMHA CHARY, JM: Aggrieved by the order(s) passed by the learned Commissioner of Income Tax (Appeals)-12, Hyderabad (“Ld. CIT(A)”), in the case of Shri Bal Reddy Kandunuri (“the assessee”) for the assessment years 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20, assessee preferred these appeals. ITA Nos. 95, 96, 97, 98 and 99/Hyd/2023 Page 2 of 5 2. Brief facts of the case are that consequent to the seizure of huge amount from the assessee on 3/12/2018 Election Flying Squad team from Mancherial, warrant under section 132A of the Income Tax Act, 1961 (for short “the Act”) was executed and the assessee submitted the return of income in response to the notice issued under section 153A of the Act. Assessment was completed by orders dated 25/9/2021 by making addition on account of unexplained investment/deposits for all these years. 3. Aggrieved by such an action of the learned Assessing Officer, assessee preferred appeal before the Ld. CIT(A), but in spite of granting several opportunities, failed to avail the same to get the matters disposed of on merits. Having given a long rope of nine adjournments, Ld. CIT(A) formed an opinion that the assessee was not really interested in pursuing the appeals and only interested in seeking adjournments. Ld. CIT(A), therefore, proceeded with the matter ex-parte and while referring to the material available on record he dismissed the appeal. 4. Assessee is therefore, before us in these appeals mainly contending that many of the notices were not served on the assessee and on four occasions the Ld. CIT(A) thought it fit to grant adjournment to the assessee because the reason for seeking adjournment was accepted to be a reasonable one. According to the Ld. AR due to the health reasons in the post Covid period the assessee could not prosecute the appeal is in an effective way. 5. Ld. AR submitted that given an opportunity the assessee is now ready to prosecute the appeals diligently and to get the appeals disposed of on merits before the Ld. CIT(A). He submitted that though the Ld. CIT(A) referred to the facts of the case basing on the material available before him, the fact remains that the assessee could not submit the material relevant to the appeals and to put forth his case in an effective way. ITA Nos. 95, 96, 97, 98 and 99/Hyd/2023 Page 3 of 5 6. Per contra, Ld. DR submitted that the Ld. CIT(A) was very lenient in granting about a dozen adjournments in a span of nine months, and the assessee cannot take advantage of his own conduct in not cooperating with the Ld. CIT(A) to dispose of the appeals on merit. He is very vehement in submitting that no lenient view can be taken in this matter and, if for any reason, the Bench takes a view that an opportunity may be granted to the assessee, then such an opportunity could be conditioned with the assessee paying heavy costs. 7. We have gone through the record in the light of the submissions made on either side. It is an undeniable fact that between 1/3/2022 and 14/12/2022, the assessee had nine months and nine adjournments were granted to the assessee. Except stating the health reasons, the assessee did not produce any material whatsoever in support thereof. 8. No doubt, all the endeavour of the authorities is to assess the correct tax liability of the assessee but in that process, the proceedings cannot be dragged on to unreasonable lengths. It’s not the only case of the assessee that the authorities will be dealing with and their time is also precious. In an attempt to balance between affording reasonable opportunity to the assessee and to see that compliance with the procedure is secured, we are of the considered opinion that fastening the assessee with costs will remedy the situation. With this view of the matter, we are inclined to set aside the impugned orders and restore the appeals to the file of the Ld. CIT(A) and the Ld. CIT(A) will entertain the appeals on the assessee producing the proof of remitting costs of Rs. 10,000/-, namely, @ Rs. 2,000/- in each of the appeals to the credit of the Prime Minister’s relief fund, on or before 1/4/2023. On that, Ld. CIT(A) will afford an opportunity to the assessee and take a view according to law. We make it amply clear to the assessee that this is the last opportunity afforded to him and if for any reason, the assessee fails to avail this opportunity, the Ld. CIT(A) is at ITA Nos. 95, 96, 97, 98 and 99/Hyd/2023 Page 4 of 5 liberty to proceed according to law. All these appeals are, accordingly, are treated as allowed for statistical purpose. 9. In the result, appeals are treated as allowed for statistical purpose. Order pronounced in the open court on this the 16 th day of March, 2023. Sd/- Sd/- (RAMA KANTA PANDA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 16/03/2023 TNMM ITA Nos. 95, 96, 97, 98 and 99/Hyd/2023 Page 5 of 5 Copy forwarded to: 1. Shri Bal Reddy Kandunuri, # 20-60, College Road, Mancherial, Telangana State. 2. Asst. Commissioner of Income Tax, Central Circle-2(2), Hyderabad. 3. Pr.CIT(Central)-Hyderabad. 4. DR, ITAT, Hyderabad. 5. GUARD FILE TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD