MOTURU CHANDRA SEKHARA RAO,USA V. THE INCOME TAX OFFICER, WARD 2(1), VIJAYAWADA

MA 3/VIZ/2025

AI Insights

The case revolves around a Miscellaneous Application (M.A. NO. 3/VIZ/2025) filed by Moturu Chandra Sekhara Rao, seeking the recall of an ex-parte order passed by the Income Tax Appellate Tribunal, Visakhapatnam. The original appeal (ITA No. 474/VIZ/2024) concerned an assessment order for the Assessment Year 2015-16, where the Income Tax Officer added Rs.61,97,471 as unexplained money and interest in the bank account of the assessee. The assessee's appeal against this order was initially dismissed, and subsequently, an ex-parte order was passed due to the non-appearance of the assessee, who had filed an adjournment petition that was overlooked. The Tribunal, upon realizing the oversight and considering the principles of natural justice, decided to recall the ex-parte order and re-list the case for a full hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360693 (ITAT-VISAKHAPATNAM)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM (HYBRID HEARING) श्री रिीश सूद ,न्याधयक सदस्य एिं श्री एस बालाक ृष्णन, लेखा सदस्य क े समक्ष BEFORE SHRI RAVISH SOOD, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER एम.ए. नं. / M.A. NO. 3/VIZ/2025 [आईटीए सं. से उत्पन्न. /ARISING OUT OF ITA No.474/VIZ/2024 (A.Y. 2015-16)] Moturu Chandra Sekhara Rao 759, chateaus Dr, Coppell, Texas Pin code: 75019 USA [PAN:BINPM8812Q] v. Income Tax Officer – Ward – 2(1) Income Tax Office C.R. Buildings, M.G. Road Vijayawada – 520010 Andhra Pradesh (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented by : Smt A. Aruna, Advocate राजस्व का प्रतततितित्व/ Department Represented by : Dr. Aparna Villuri, Sr. AR सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 09.05.2025 घोषणा की तारीख/Date of Pronouncement : 20.05.2025 आदेश /O R D E R PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER: 1. By way of this Miscellaneous Application assessee is seeking for recall of the order passed by the Tribunal in ITA No. 474/VIZ/2024 dated 09.01.2025 for the A.Y. 2015-16. M.A. NO. 3/VIZ/2025 Moturu Chandra Sekhara Rao Page. No 2 2. In the miscellaneous application, assessee submitted as under: - “1. Assessment order in the case of the appellant was passed on 07.01.2024 u/s. 147 r.w.s 144 read with section 144B of the Act wherein the assessing officer made addition of Rs.61,97,471/- towards unexplained money and interest in bank account. The appeal filed by the appellant against the assessment order was dismissed by the learned Commissioner of Income Tax (Appeals) vide order dated 06.08.2024. 2. The appellant engaged a Chartered Accountant of Vijayawada for filing of appeal against the order of the learned Commissioner of Income Tax (Appeals). The appeal was prepared by him and was filed online before the hon'ble ITAT, Visakhapatnam Bench on 19.11.2024 vide ITA No.474/VIZ/2024. 3. The appeal was fixed for hearing for the first time on 09.01.2025. However, the appellant file an adjournment petition in the e-filing portal under the petitions section of the portal on 08.01.2025. 4. The hon'ble ITAT dismissed the case exparte vide order dated 09.01.2025.The appellant is regularly watching the status of the case on e-filing portal but the dismissal is not reflected in the portal. The appellant came to know about the fact of dismissal only when the order is received by post. 5. As explained above, could not represent his case due to the reasons which were beyond his control. The failure is neither intentional nor deliberate. Therefore, the appellant prays the hon'ble ITAT to kindly recall the order dated 09.01.2025 passed in appeal no. 474/VIZ/2024 and grant one more opportunity of hearing to the appellant in the interest of rendering substantial justice.” 3. At the time of hearing, Ld. Authorised Representative [hereinafter “Ld.AR”] submitted that Tribunal has passed ex-parte order and allowed the appeal of the assessee since there was no representation on behalf of the assessee at the time of hearing of the appeal. The Ld.AR submitted that non-appearance of the assessee on the date of hearing of appeal was not due to negligence on its part nor any wilful default but was solely due to the reason that the assessee has filed adjournment petition on 08.01.2025. He also further pleaded that appeal was fixed for hearing for the first time on 09.01.2025. The M.A. NO. 3/VIZ/2025 Moturu Chandra Sekhara Rao Page. No 3 Ld.AR pleaded that the order of the Tribunal may be recalled and the case may be decided on merits in the interest of the justice. 4. Per contra, Ld. Departmental Representative [hereinafter in short “Ld.DR”] did not object to the submissions of the Ld.AR. 5. We have heard both the sides and it is an admitted fact that assessee has filed an adjournment letter through e-filing portal of the Tribunal on 08.01.2025. The petition for adjournment was inadvertently overlooked by the Tribunal on 09.01.2025 by passing the exparte order. However, considering the principles of natural justice as well as submissions of the Ld.AR, in order to provide one more opportunity to the assessee, the order of the Tribunal passed in ITA No. 474/VIZ/2024 for the A.Y. 2015-16 dated 09.01.2025 is hereby recalled and the Miscellaneous Application filed by the assessee is allowed. The Registry is directed to post the appeal for hearing in due course after issuing notice to both parties. 6. In the result, the Miscellaneous Application filed by the assessee is allowed. Order pronounced in the open court on 20th May, 2025. Sd/- (रिीश सूद) (RAVISH SOOD) न्याधयक सदस्य/JUDICIAL MEMBER Sd/- (एस बालाक ृष्णन) (S. BALAKRISHNAN) लेखा सदस्य/ACCOUNTANT MEMBER Dated: 20.05.2025 Giridhar, Sr.PS M.A. NO. 3/VIZ/2025 Moturu Chandra Sekhara Rao Page. No 4 आदेशकीप्रतततितिअग्रेतषत/ Copy of the order forwarded to:- 1. तिर्ााररती/ The Assessee : Moturu Chandra Sekhara Rao 759, chateaus Dr, Coppell, Texas Pin code: 750190 USA 2. राजस्व/ The Revenue : Income Tax Officer – Ward – 2(1) Income Tax Office C.R. Buildings, M.G. Road Vijayawada – 520010 Andhra Pradesh 3. The Principal Commissioner of Income Tax 4. तिभागीय प्रतततितर्, आयकर अिीिीय अतर्करण, तिशाखािटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गार्ा फ़ाईि / Guard file //True Copy// आदेशािुसार / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam "