RAVINDAR REDDY MIRYALA,HYDERABAD V. DCIT., CENTRAL CIRCLE-1(3), HYDERABAD

ITA 567/HYD/2025

AI Insights

This case involves an appeal by Ravindar Reddy Miryala against the order of the Commissioner of Income Tax (Appeals) -11, Hyderabad, for the assessment year 2019-20. The primary issue in the appeal was the addition of Rs.73,20,000 under section 68 of the Income Tax Act, 1961, which the Assessing Officer (AO) had made due to the assessee's failure to prove the identity, creditworthiness of creditors, and the genuineness of transactions. The CIT(A) had dismissed the appeal for non-prosecution as the assessee failed to respond to multiple notices. The Tribunal, however, found that the CIT(A) should have decided the appeal on merits rather than dismissing it for non-prosecution, contrary to the provisions of section 250(6) of the Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714654 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURPREET SINGH
• Keywords: Set aside
• Section: 144

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 Manjunatha G., Accountant Member आ.अपी.सं /ITA No.567/Hyd/2025 (निर्धारण वर्ा/Assessment Year: 2019-20) Ravindar Reddy Miryala Hyderabad PAN : AHYPM2324C Vs. Deputy Commissioner of Income Tax Central Circle-1(3) Hyderabad (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: None रधजस् व द्वधरध/Revenue by: Shri Gurpreet Singh, DR सुिवधई की तधरीख/Date of Hearing: 30/07/2025 घोर्णध की तधरीख/ Date of Pronouncement: 06/08/2025 आदेश / ORDER PER VIJAY PAL RAO, VICE PRESIDENT: This appeal filed by the assessee is directed against the order dated 17.01.2025 of the Commissioner of Income Tax (Appeals) [“Ld.CIT(A)”]-11, Hyderabad, for the A.Y.2019-20. Printed from counselvise.com 2 ITA No.567/Hyd/2025 Ravindar Reddy Miryala 2. The assessee has raised the following grounds of appeal: Printed from counselvise.com 3 ITA No.567/Hyd/2025 Ravindar Reddy Miryala Printed from counselvise.com 4 ITA No.567/Hyd/2025 Ravindar Reddy Miryala 3. None has appeared on behalf of the assessee when this appeal was called for hearing, despite notice was issued to the assessee along with notice sent to the e-mail ID. It transpires from the record that even in response to the earlier notice issued by the Tribunal, there was no appearance on behalf of the assessee. It also transpires from the record that on the last date of hearing, i.e., on 23.06.2025, hearing was adjourned at the request of the assessee for 15.07.2025, however, despite the adjournment of hearing was granted at the request of the assessee, there was no appearance on behalf of the assessee on 15.07.2025. Therefore, Printed from counselvise.com 5 ITA No.567/Hyd/2025 Ravindar Reddy Miryala despite repeated opportunities and notices issued to the assessee, the assessee has not appeared to prosecute his appeal. Accordingly, the Bench proposed to hear and dispose of this appeal ex-parte. 4. The Ld.DR has submitted that there was no response and compliance on behalf of the assessee in response to the various notices issued by the AO. He has thus referred to the impugned order of the Ld.CIT(A) and submitted that the Ld.CIT(A) has also passed the impugned order ex-parte, when there was no response to the various notices issued by the Ld.CIT(A). He has pointed out that the Ld.CIT(A) has issued as many as 15 notices, out of which, the assessee has sought adjournment on four occasions and there was no compliance in response to the 11 notices issued by the Ld.CIT(A). Thus, the Ld.CIT(A) has dismissed the appeal of the assessee for non-prosecution. 5. Having considered the submissions of the Ld.DR and careful perusal of the orders of the authorities below, we found that the AO has made addition of Rs.73,20,000/- u/s 68 of the Income Tax Act, 1961 (“the Act”), when the assessee has failed to discharge his onus of proving the identity and creditworthiness of the creditors as well as the genuineness of the transactions. Thus, it is manifest from the assessment order that there was no compliance on behalf of the assessee to the various notices issued by the AO, accordingly, the AO proceeded to frame the assessment u/s 144 of the Act. Thereafter, there was only a Printed from counselvise.com 6 ITA No.567/Hyd/2025 Ravindar Reddy Miryala partial compliance as the assessee has filed the bank account statement of only two parties out of the seven parties from whom the assessee claimed to have taken the loan. Before the Ld.CIT(A), there was no appearance on behalf of the assessee and consequently, the Ld.CIT(A) has dismissed the appeal of the assessee for non-prosecution. Accordingly, the conduct of the assessee is very casual in prosecuting the matters. However, the Ld.CIT(A) instead of deciding the appeal on merits, has dismissed the same for non-prosecution, which is contrary to the provisions of section 250(6) of the Act. Accordingly, in the facts and circumstances of the case and in the interest of justice, the impugned order of the Ld.CIT(A) not deciding the appeal on merit is set aside and the matter is remanded to the record of the Ld.CIT(A) for fresh adjudication on merits, after giving one more opportunity of hearing to the assessee. 6. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the Open Court on 6th August, 2025. Sd/- Sd/- (MANJUNATHA G.) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE PRESIDENT Hyderabad, Dated 6th August, 2025 L.Rama, SPS Printed from counselvise.com 7 ITA No.567/Hyd/2025 Ravindar Reddy Miryala Copy to: S.No Addresses 1 Shri Ravindar Reddy Miryala, 1-8-1/43, Near Sudaiah Park, Baghlingampally, Hyderabad 2 The Deputy Commissioner of Income Tax, Central Circle-1(3), Aayakar Bhavan, Basheerbagh, Hyderabad 4 The Pr.Commissioner of Income Tax, Hyderabad 4 The DR, ITAT, Hyderabad Benches 5 Guard File TRUE COPY SENIOR PRIVATE SECRETARY ITAT, HYDERABAD Printed from counselvise.com "