KUMARASWAMY THADEM,WARANGAL V. INCOME TAX OFFICER, WARD-3, WARANGAL

ITA 231/HYD/2025

AI Insights

The case involves an appeal by Shri Kumaraswamy Thadem against the order of the learned CIT (A)-NFAC Delhi for the Assessment Year 2017-18. The primary contention was the dismissal of the assessee's appeal by the CIT (A) on grounds of insufficient evidence and submissions to support the appeal. The Assessing Officer had earlier passed an ex-parte order under section 144 of the Income Tax Act, 1961, due to the assessee's failure to explain the source of cash deposits in his bank account. The Tribunal noted that the assessee had indeed submitted a reply explaining the source of deposits, although proper evidence was lacking. Consequently, the Tribunal decided to remand the case back to the Assessing Officer for a fresh assessment, allowing the assessee another opportunity to substantiate his claims.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26892 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SM-A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P VINOD
• Keywords: Set aside; Corroborative evidences
• Section: 144; 142(1)

Judgement Text

" ITA No 231 of 2025 Kumaraswamy Thaedm Page 1 of 6 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.231/Hyd/2025 (िनधाŊरण वषŊ/Assessment Year: 2017-18) Shri Kumaraswamy Thadem WARANGAL PAN:AVRPT7818D Vs. Income Tax Officer Ward (3) Warangal (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Advocate P Vinod राज̾ व Ȫारा/Revenue by:: Shri Waseem UR Rehman, DR सुनवाई की तारीख/Date of hearing: 26/02/2025 घोषणा की तारीख/Pronouncement: 03/03/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal by the assessee is directed against the order dated, 1/3/2024 of the learned CIT (A)-NFAC Delhi, for the A.Y.2017-18. 2. The assessee has raised the following grounds of appeal: ITA No 231 of 2025 Kumaraswamy Thaedm Page 2 of 6 3. At the time of hearing, the learned AR of the assessee has submitted that the learned CIT (A) has dismissed the appeal of the assessee on the ground that despite giving sufficient opportunities, the assessee failed to submit any submission or evidence during the appellate proceedings in support of the grounds. He has further submitted that the Assessing Officer has also passed an ex-parte order u/s 144 of the I.T. Act, 1961 whereas the assessee filed the reply on 22/11/2019 explaining ITA No 231 of 2025 Kumaraswamy Thaedm Page 3 of 6 the source of deposits in the bank account. The additions made by the Assessing Officer have been confirmed by the learned CIT (A) on the premise that the assessee has failed to produce any explanation or supporting evidence before the Assessing Officer as well as before the learned CIT (A) which is contrary to the facts on record. Thus, the learned AR has pleaded that the assessee may be given one more opportunity to produce the relevant details and supporting evidences before the Assessing Officer and the matter may be remanded to the record of the Assessing Officer for fresh adjudication. 4. On the other hand, the learned DR has relied upon the orders of the authorities below. 5. We have considered the rival submissions as well as the relevant material available on record. The Assessing Officer has passed the best judgment assessment u/s 144 of the I.T. Act, 1961 on the ground that the assessee has failed to explain the source of cash deposits in the bank account. We note that the assessee has filed the reply to one of the notices issued by the Assessing Officer u/s 142(1) of the Act and the same is referred in para 8 of the assessment order as under: ITA No 231 of 2025 Kumaraswamy Thaedm Page 4 of 6 6. Therefore, it is clear that some reply was filed by the assessee explaining the source of deposits in the bank account, though the proper evidence may not have been filed by the assessee. On appeal, the learned CIT (A) dismissed the appeal of the assessee by giving the reasons in para 7 & 8 of the impugned order as under: ITA No 231 of 2025 Kumaraswamy Thaedm Page 5 of 6 7. The learned CIT (A) has dismissed the appeal of the assessee on the premises that the assessee failed to give any explanation about the nature and source of the cash deposits in the bank account before the Assessing Officer and also failed to submit any submission or evidence during the appellate proceedings. The learned CIT (A) has not commented on the reply filed by the assessee while passing the impugned order. Accordingly, in the facts and circumstances of the case and in the interest of justice, we are of the considered view that the assessee deserves one more opportunity to present its case before the Assessing Officer. Hence 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 giving an opportunity of hearing to the assessee to produce the relevant details and supporting evidences. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 03/03/2025 Sd/- Sd/- (MANJUNATHA, G) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 03/03/2025 Vinodan/sps ITA No 231 of 2025 Kumaraswamy Thaedm Page 6 of 6 Copy to: S.No Addresses 1 Shri Kumaraswamy Thadem, 18-7-276/1 SVN Road, Warangal 506002 2 Income Tax Officer Ward-3 Income Tax Office, D.No.1-8-610 3rd Floor, Mayuri Complex, TSNPDCL Bhavan, Nakkalagutta, Hanamkonda, Warangal 506001, Telangana 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "