LEELA RAM CHOUDHARY,HYDERABAD V. ACIT, CENTRAL CIRCLE-2(1), HYDERABAD

ITA 105/HYD/2025

AI Insights

The case involves multiple appeals by Leela Ram Choudhary, Mahadev Choudhary, and Ashok Kumar against the orders of the Commissioner of Income Tax (Appeals) for the assessment years 2017-18 to 2020-21. The primary contention was the improper service of notices and the lack of opportunity for cross-examination, which the assessees argued violated the principles of natural justice. The Tribunal noted that the appeals were dismissed by the CIT(A) for non-prosecution without adjudicating on merits. The Tribunal found merit in the assessees' arguments regarding the procedural lapses and remanded the cases for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312596 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SRINATH SADANALA
• Assessee Lawyers: A.V.RAGHURAM
• Keywords: Set aside; Unexplained investment; Principle of natural justice; Opportunity of cross examination
• Section: 69

Judgement Text

" आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice President and Shri Madhusudan Sawdia, Accountant Member आ.अपी.सं /ITA No.103-105/Hyd/2025 (निर्धारण वर्ा/Assessment Year: 2017-18, 2018-19 & 2020-21) Leela Ram Choudhary Hyderabad [PAN :AHAPC0813E] Vs. Asst.Commissioner of Income Tax Central Circle-2(1) Hyderabad (Appellant) (Respondent) आ.अपी.सं /ITA No.99/Hyd/2025 (निर्धारण वर्ा/Assessment Year: 2019-20) Mahadev Choudhary Hyderabad [PAN : APRPC4388M] Vs. Asst.Commissioner of Income Tax Central Circle-2(1) Hyderabad (Appellant) (Respondent) आ.अपी.सं /ITA No.100/Hyd/2025 (निर्धारण वर्ा/Assessment Year: 2019-20) Ashok Kumar Hyderabad [PAN :HNYPK3276C] Vs. Asst.Commissioner of Income Tax Central Circle-2(1) Hyderabad (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri A.V.Raghuram, Advocate रधजस् व द्वधरध/Revenue by: Shri Srinath Sadanala, Sr.DR सुिवधई की तधरीख/Date of Hearing: 01/05/2025 घोर्णध की तधरीख/Date of Pronouncement: 02/05/2025 2 ITA No.103-105/Hyd/2025, 99&100/Hyd/2025 Leela Ram Choudhary and Others आदेश / ORDER PER BENCH : These appeals filed by the assessees are directed against the separate orders dated 11.10.2024, 23.12.2024 and 24.12.2024 of Commissioner of Income Tax (Appeals)-12, Hyderabad [“Ld.CIT(A)”] for the assessment year 2017-18, 2018- 19, 2019-20 and 2020-21. Since the grounds raised in all these appeals are identical in nature, these appeals are clubbed, heard together and a consolidated order is being passed as under, taking facts from ITA No.103/Hyd/2025 as lead appeal. 2. The assessee has raised the following grounds of appeal : 1) On the facts and in the circumstances of the case, the order of the Ld.CIT(A) is erroneous and unsustainable in law apart from being passed in violation of principles of natural justice. The Ld.CIT(A) failed to appreciate that proper notices were not served on the appellant as required under section 282 of the Act r.w.rule 127 of the Rules, and therefore Appellant could not put forth his case. 2) Without prejudice to the above, the Ld.CIT(A) erred in upholding the action of the AO, wherein the AO ha snot recorded proper satisfaction before initiating proceedings u/s 153C of the Act. 3) Without prejudice to the above, the Ld.CIT(A) erred in sustaining the addition made by the AO of Rs.1,00,000 as unexplained investment u/s 69 of the Act. The Ld.CIT(A) failed to appreciate that the pen drive was seized from third person premises 3 ITA No.103-105/Hyd/2025, 99&100/Hyd/2025 Leela Ram Choudhary and Others i.e.employee of Rubberwala group and not from the premise of Rubberwala and hence such pen drive does not have any evidentiary value. 4. The Ld.CIT(A) failed to appreciate that the AO has not brought any other document which prove that the Appellant paid cash towards purchase, apart from excel sheet and oath statement of Mr.Ansari which does not have any evidentiary value and is a dumb document. 5. The Ld.CIT(A) failed to appreciate that the AO has not provided any opportunity of cross examination in respect of the statement made by M/s Rubberwala housing and infrastructure limited accepting the payment of cash. 3. At the outset, it is seen that there is a delay of 25 days in filing the appeal before the Tribunal in ITA No.103 – 105/Hyd/2025. The assessee has filed condonation petition in all these cases with an affidavit, explaining the reasons for such delay. After going though the reasoning stated in the affidavit and after hearing the Ld.DR, the delay in filing the appeals is condoned. ITA No.103/Hyd/2025 for the A.Y.2017-18: 4. The Ld.AR submitted that, the assessee had filed appeal before the Ld.CIT(A) against the order of the learned Assessing Officer (“Ld.AO”) passed u/s 153C of the Income Tax Act, 1961 (“the Act”). However, the Ld.CIT(A) has dismissed the appeal of the assessee, while passing the ex-parte order on the ground 4 ITA No.103-105/Hyd/2025, 99&100/Hyd/2025 Leela Ram Choudhary and Others that the assessee has not complied with the notices issued by the Ld.CIT(A). He has also submitted that, the Ld.CIT(A) has not adjudicated the appeal of the assessee on merits, but the same was dismissed for non-prosecution. He has further submitted that the reason for non-prosecution of the appeal was not deliberate, but, due to conflict of the assessee with the counsel. Hence, he has pleaded that the impugned order of the Ld.CIT(A) may be set aside and the matter may be remanded to the record of the Ld.CIT(A) for fresh adjudication on merits after giving appropriate opportunity of hearing to the assessee. 5. On the other hand, the Ld.DR has raised objection, submitting that the assessee was given sufficient opportunities but the assessee could not avail the same. He, therefore, pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeals filed by the assessee. 6. We have considered the rival submissions and carefully perused the impugned order of the Ld.CIT(A). The Ld.CIT(A) has dismissed the appeal of the assessee for non-prosecution /non- compliance on the part of the assessee and therefore, the appeal of the assessee was not decided on merits. The Ld.AR has submitted that the reason for non-prosecution of the appeal was not deliberate, but, due to conflict of the assessee with the counsel. Accordingly, in the facts and circumstances of the case and keeping in view the principles of natural justice, we set aside the order of the Ld.CIT(A) and the matter is remanded to 5 ITA No.103-105/Hyd/2025, 99&100/Hyd/2025 Leela Ram Choudhary and Others the record of the Ld.CIT(A) for fresh adjudication on merits after giving appropriate opportunity of hearing to the assessee. 7. In the result, appeal of the assessee in ITA No.103/Hyd/2025 for the A.Y.2017-18 is allowed for statistical purpose. ITA No. 99,100,104 & 105/Hyd/2025 : 8. Since the issues involved in the all these appeals are identical with the issue involved in ITA no. 103/Hyd/2025, our discussion and findings given in ITA no. 103/Hyd/2025 shall mutatis mutandis apply to these appeals as well. Accordingly, these appeals are allowed for statistical purpose. 9. To sum up, all the appeals filed by the assessees are allowed for statistical purpose. Order pronounced in the Open Court on conclusion of hearing on 2nd May, 2025. Sd/- Sd/- (VIJAY PAL RAO) VICE PRESIDENT (MADHUSUDAN SAWDIA) ACCOUNTANT MEMEBR Hyderabad, Dated 2nd May, 2025 L.Rama, SPS 6 ITA No.103-105/Hyd/2025, 99&100/Hyd/2025 Leela Ram Choudhary and Others Copy to: S.No Addresses 1 (i) Shri Leela Ram Choudhary15-4-180, Nampally, Patlibowli, Hyderabad (ii) Shri Ashok Kumar, 4-3-258/A/C/3, Gujarati Galli, Nampally, Hyderabad (iii) Shri Mahadev Choudary, 4-3-258/A/B-210, Sri Electronics, Giriraj Lanke, Bank Street, Nampally, Putlibowli, Hyderabad 2 The Asst.Commissioner of Income Tax, Central Circle- 2(1), Aayakar Bhavan, Basheerbagh, Hyderabad 3 The Pr.CIT(Central), Hyderabad 4 The DR, ITAT Hyderabad Benches 5 Guard File TRUE COPY SENIOR PRIVATE SECRETARY ITAT, HYDERABAD "