KIRAN KUMAR BUSSA,KARIMNAGAR V. ITO., WARD-2, KARIMNAGAR

ITA 496/HYD/2025

AI Insights

The case involves an appeal by Shri Kiran Kumar Bussa against the order of the learned CIT (A)-NFAC for the assessment year 2016-17, which was passed without considering the assessee's request for adjournment to opt for the Direct Tax Vivad-se-Vishwas Scheme 2024. The assessee faced a delay of 84 days in filing the appeal due to unawareness of the impugned order until verified by his Tax Consultant. The Tribunal found the reasons for the delay sufficient and condoned it. The main contention was the estimation of commission income by the Assessing Officer at 12%, which was deemed arbitrary and without basis. The Tribunal noted that the assessee was not given a fair opportunity to present his case and thus remanded the matter back to the CIT (A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652950 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2016-2017
• Laws Referred To: Direct Tax Vivad-se-Vishwas Scheme 2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A.V.RAGHURAM; ADOPTING NET PROFIT WHICH IS WITHOUT ANY BASIS; FURTHER
• Keywords: Condonation of delay; Set aside; Corroborative evidences; Period of limitation

Judgement Text

" ITA No 496 of 2025 Kiran Kumar Bussa Page 1 of 7 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-B ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member आ.अपी.सं /ITA No.496/Hyd/2025 (िनधाŊरण वषŊ/Assessment Year: 2016-17) Shri Kiran Kumar Bussa Karimnagar PAN:AJTPB5696F Vs. Income Tax Officer Ward – 2 Karimnagar (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri A.V. Raghuram, Advocate राज̾ व Ȫारा/Revenue by:: Dr. Sachin Kumar, DR सुनवाई की तारीख/Date of hearing: 17/06/2025 घोषणा की तारीख/Pronouncement: 19/06/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal filed by the assessee is directed against the order dated 29/10/2024 of the learned CIT (A)-NFAC for the A.Y.2016-17. 2. There is a delay of 84 days in filing the present appeal. The assessee has filed a petition for condonation of delay which is supported by an affidavit. ITA No 496 of 2025 Kiran Kumar Bussa Page 2 of 7 3. The learned AR of the assessee has submitted that in response to the notice of hearing dated 30/09/2024, the assessee sent a reply and requested for adjournment of the hearing as the assessee desired to opt for Direct Tax Vivad-se-Vishwas Scheme 2024. The assessee thereafter was busy in arranging the funds to meet the tax demand of Rs.12.00 crores to be paid within 15 days from the issuance of Form-II by the designated authority under Direct Tax Vivad-se-Vishwas Scheme 2024. However, the learned CIT (A) has dismissed the appeal of the assessee vide the impugned order dated 29/10/2024 without considering the request of the assessee for adjournment of the hearing. Since the assessee could not mobilize the required funds, therefore, consulted his Tax Consultant for pursuing the appeal before the learned CIT (A). However, when it was verified by the Tax Consultant, the impugned order was already passed by the learned CIT (A) after rejecting the request of the adjournment of the assessee and therefore, the assessee could not file the appeal before the Tribunal within the period of limitation as the assessee was not aware about the impugned order till it was verified from the record by the Tax Consultant. Thus, the learned AR has submitted that the delay of 84 days in filing the present appeal may be condoned and the appeal of the assessee may be admitted for adjudication on merits. 4. On the other hand, the learned DR has submitted that the assessee has not explained sufficient reasons to justify the ITA No 496 of 2025 Kiran Kumar Bussa Page 3 of 7 delay of 84 days in filing the present appeal therefore, he has vehemently objected to the condonation of the delay. 5. We have considered the rival contentions as well as the relevant material available on record. The assessee has explained the cause of delay of 84 days in filing the appeal in para 2 to 5 of the affidavit as under: ITA No 496 of 2025 Kiran Kumar Bussa Page 4 of 7 6. We note that in response to the notice dated 30/09/2024, the assessee filed a letter requesting the adjournment of the hearing on the ground that the assessee contemplates to settle the disputes under the Direct Tax VSVS 2024. A copy of the reply filed by the assessee is placed at page No.11 of the paper book whereby the assessee has uploaded the reply on 4/10/2024 for requesting the adjournment of the hearing as the assessee wanted to settle the dispute under the Direct Tax VSVS 2024. It is manifest from the impugned order that the learned CIT (A) has passed the order on 29/10/2024 without considering the request of the assessee for adjournment of the hearing thereby upheld the additions made by the Assessing Officer @ 12% of the total deposits in the bank account. ITA No 496 of 2025 Kiran Kumar Bussa Page 5 of 7 The Assessing Officer has applied the commission @ 12% on the business of the assessee dealing in Farm Products and earning the commission income. Thus, it is clear that the assessee was under the impression that the learned CIT (A) will give reasonable time to the assessee for opting Direct Tax Vivad-se-Vishwas Scheme, 2024, however, the impugned order was passed without granting the time to the assessee. Accordingly, in view of the facts and circumstances, we find that the reasons explained by the assessee in the affidavit are sufficient for not filing the appeal within the period of limitation and therefore, we condone the delay of 84 days in filing the present appeal. 7. The assessee has raised the following grounds of appeal: ITA No 496 of 2025 Kiran Kumar Bussa Page 6 of 7 8. At the time of hearing the learned AR of the assessee has submitted that the learned CIT (A) has passed ex-parte order without giving an opportunity to the assessee to furnish the relevant record as well as submissions. Since the assessee requested for adjournment of the hearing and therefore, the relevant record as well as the submissions has not been considered by the learned CIT (A) while passing the impugned order. 9. The learned DR has relied upon the impugned order of the learned CIT (A) and submitted that the assessee was given sufficient opportunity to file the supporting evidence but the assessee failed to produce any documentary evidence in support of his claim of declaring the commission income at Rs.1,25,950/- as against the commission income estimated by the Assessing Officer at Rs.59,56,380/-. 10. We have considered the rival submission as well as relevant material available on record. We find that the Assessing Officer has estimated the commission income of the assessee by adopting net profit @12% which is without any basis and further the same is on the higher side and arbitrary. The Assessing Officer has not given any basis for estimation of the commission income @ 12% as against the income declared by the assessee at Rs.1,25,950/-. Further, the entire deposits in the bank account of the assessee are treated by the Assessing Officer as business ITA No 496 of 2025 Kiran Kumar Bussa Page 7 of 7 income. Therefore, in the facts and circumstances of the case and in the interest of justice, when the learned CIT (A) has passed the ex-parte order, we set aside the impugned order and remand the matter to the record of the learned CIT (A) for fresh adjudication after giving an appropriate opportunity of hearing to the assessee. We order accordingly. 11. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 19th June, 2025. Sd/- Sd/- (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 19th June, 2025 Vinodan/sps Copy to: S.No Addresses 1 Shri Kiran Kumar Bussa, 4-2-98/2 Kedareshwara Street, Vemulawada, Karimnagar 505302 2 Income Tax Officer Ward-2 Aayakar Bhavan, Near Netaji Theatre, Karimnagar 505001 Telangana 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "