SREE LATHA YERABATI,HYDERABAD V. INCOME TAX OFFICER, WARD-13(3), HYDERABAD

ITA 781/HYD/2025

AI Insights

The case involves Smt. Sree Latha Yerabati, the appellant, who appealed against the order of the Learned Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi, which had dismissed her appeal ex parte due to non-compliance with notices. The original assessment was made by the Learned Assessing Officer under Section 147 read with Section 144B of the Income Tax Act, 1961, for the Assessment Year 2016-17. The Tribunal found that the assessment order might not have properly appreciated the factual matrix of the case and thus decided to grant another opportunity to the assessee to present her case on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784786 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2016-2017
• Appeal Filed On: 03-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K GUPTA
• Keywords: Set aside; Opportunity of being heard; Salary income
• Section: 147

Judgement Text

" ITA No 781 of 2025 Sree Latha Yerabati Page 1 of 6 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-A ‘ Bench, Hyderabad Įी ͪवजय पाल राव, उपाÚ य¢ एवं Įी मधुसूदन सावͫडया, लेखा सदè य क े सम¢ । Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member आ.अपी.सं /ITA No.781/Hyd/2025 (िनधाŊरण वषŊ/Assessment Year: 2016-17) Smt. Sree Latha Yerabati Hyderabad PAN:ARCPS4112J Vs. Income Tax Officer Ward 13(3) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Advocate S K Gupta राज̾ व Ȫारा/Revenue by:: Shri Rakesh Chintagumpula, Sr. DR सुनवाई की तारीख/Date of hearing: 10/11/2025 घोषणा की तारीख/Pronouncement: 14/11/2025 आदेश/ORDER Per Madhusudan Sawdia, A.M.: This appeal is filed by Smt. Sree Latha Yerabati (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, (NFAC), Delhi (“Ld. CIT(A)”) dated 07.03.2025 for the A.Y 2016-17. Printed from counselvise.com ITA No 781 of 2025 Sree Latha Yerabati Page 2 of 6 2. The assessee has raised the following grounds of appeal: “1. In the facts and circumstance of the case, the order of the Ld. AO is not sustainable on facts or in law. 2. In the facts and circumstance of the case, the respected CIT(A) ought not to have dismissed the appeal. 3. In the facts and circumstance of the case, the Ld. AO ought to have considered the fact that the assessee had sources for explaining the deposits made with M/s Kapil Chits (Hyderabad) Pvt Limited. 4. In the facts and circumstance of the case, the Ld. AO ought to have clarified as to how the amount of Rs. 59,40,000/-, the subject matter of addition, has been arrived at. 5. In the facts and circumstance of the case, the Ld. AO and the respected CIT(A) ought to have considered the fact that the investment in the chits has flown from the salary income of the assessee. 6. The assessee may be permitted to add, alter, modify or drop any ground that may be urged at the time of hearing with the previous approval of the Hon’ble ITAT.” 3. The brief facts of the case are that the assessee had filed an appeal before the Ld. CIT (A) against the order of the Learned Assessing Officer (“Ld.AO”) for Assessment Year 2016-17, passed under Section 147 read with Section 144B of the Income Tax Act, 1961 (“the Act”), dated 26.03.2022. However, before the Ld. CIT(A), the assessee could not comply with the notices issued, and consequently, the Ld. CIT(A) dismissed the appeal of the assessee ex parte. 4. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before this Tribunal. During the course of hearing, the Printed from counselvise.com ITA No 781 of 2025 Sree Latha Yerabati Page 3 of 6 Learned Authorized Representative (“Ld. AR”) placed detailed submissions and relied upon various documentary evidences filed in the paper book. The Learned Departmental Representative (“Ld. DR”), on the other hand, supported the orders of the lower authorities. In this regard, we have gone through para nos. 5.6 to 5.11 of the order of the Ld. CIT(A), which is to the following effect: Printed from counselvise.com ITA No 781 of 2025 Sree Latha Yerabati Page 4 of 6 5. On perusal of the above, it is evident that the appeal could not be adjudicated on merits due to non-compliance by the assessee before the Ld. CIT(A). Furthermore, after hearing the submissions of the Ld. AR and examining the documents relied upon, we find that the assessment order appears to have been Printed from counselvise.com ITA No 781 of 2025 Sree Latha Yerabati Page 5 of 6 passed without proper appreciation of the factual matrix of the case. Therefore, in view of the above and in the interest of substantial justice, we are of the considered opinion that one more opportunity ought to be granted to the assessee to present its case on merits. Accordingly, we set aside the impugned order passed by the Ld. CIT(A), and restore the matter to his file with a direction to adjudicate the appeal afresh, after providing adequate opportunity of being heard to the assessee. The assessee is also directed to fully cooperate in the appellate proceedings and shall not seek unnecessary adjournments. The assessee shall be at liberty to file any evidence or submissions in support of its claim. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 14th November, 2025. Sd/- Sd/- (VIJAY PAL RAO) VICE PRESIDENT (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER Hyderabad, dated 14th November, 2025 Vinodan/sps Printed from counselvise.com ITA No 781 of 2025 Sree Latha Yerabati Page 6 of 6 Copy to: S.No Addresses 1 Smt. Sree Lath Yerabati, 108 Satya Sai Apartments, East SR Nagar Colony, Hyderabad 500038 2 Income Tax Officer Ward 13(3) Aayakar Bhavan, Basheer Bagh Hyderabad 500004 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order Printed from counselvise.com "