SURESH KUMAR GIDDALURU,BANGALORE V. ASSESSMENT UNIT ITO, WARD-3(2)(6), SURAT

ITA 915/SRT/2025

AI Insights

The case involves Suresh Kumar Giddaluru, the appellant, contesting the actions of the Assessing Officer and the Commissioner of Income-tax (Appeals) regarding the reopening of his assessment for the Assessment Year 2018-19. The primary issues included the validity of the notice under Section 148, the addition of short-term capital gains, and the treatment of certain income as business income. The Tribunal's decision centered on the procedural correctness of the notice issuance under Section 148, specifically the requirement of sanction by the appropriate authority after the lapse of three years from the end of the relevant assessment year.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830844 (ITAT-SURAT)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 29-08-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Business income; Cost of acquisition; Principle of natural justice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 915/SRT/2025 (Assessment Year: 2018-19) Suresh Kumar Giddaluru, Flat No. 4082, Soba Amithist, Kannamangala, Bangalore, Karnataka-560066 [PAN : AFRPG 8258 C] Vs. Jurisdictional Assessing Officer, Ward 3(2)(6), Surat (Appellant) .. (Respondent) Appellant represented by : Shri P.M. Jagasheth, CA Respondent represented by: Shri Ajay Uke, Sr DR Date of Hearing 23.01.2026 Date of Pronouncement 23.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the assessee against the order dated 10.07.2025 passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as the “Ld. CIT(A)”), under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year 2018-19. 2. The assessee has raised following grounds of appeal:- “1. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in reopening the assessment u/s.147 of the act and issuing notice u/s.148 of the Income Tax Act, 1961. 2. On the facts and in the circumstances of the case as well as the law on the subject. the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs.78,91,200/- on account of computing short term capital gain by valuing 10 percent of the estimated cost of acquisition. Printed from counselvise.com ITA No. 915/SRT/2025 Suresh Kumar Giddaluru Vs. ITO Asst. Year : 2018-19 - 2– 3. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs. 10,07,553/- on account of alleged commission and brokerage income treated as business income on the basis of Form-26AS statement. 4. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in initiating penalty proceedings u/s. 270A(10) of the Income. 5. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has not offered adequate opportunities to hear the case and passed ex-parte order, hence the case may please be set aside and restored back to the CIT(A) or AO for sake of interest of natural justice.” 3. The present appeal is pertaining to the Assessment Year 2018-19. The notice u/s.148 of the Act has been issued on 05.04.2022. As per the provisions of section 151 of the Act, the sanction for issuance of notice u/s.148 of the Act has to be granted by the Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General if more than 3 years have elapsed from the end of the relevant Assessment Year. Since the approval has been given by the Principal Commissioner in this case, and this fact has not been disputed by the Revenue, we hold that notice issued by the Revenue is vitiated, and hence the subsequent proceedings are hereby treated as null and void. 4. In the result, the appeal filed by the assessee is allowed. This order is pronounced in the open Court on 23.01.2026 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Surat; Dated 23/01/2026 btk Printed from counselvise.com ITA No. 915/SRT/2025 Suresh Kumar Giddaluru Vs. ITO Asst. Year : 2018-19 - 3– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ ) अपील ( / The CIT(A)- 5. िवभागीय Ůितिनिध , अिधकरण अपीलीय आयकर , /DR,ITAT, Surat, 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Surat 1. Date of dictation …dictated in the open court on..…23.01.2026….….. 2. Date on which the typed draft is placed before the Dictating Member … …23.01.2026………… 3. Other Member……23..01.2026…………… 4. Date on which the approved draft comes to the Sr.P.S./P.S …. …23.01.2026…………. 5. Date on which the fair order is placed before the Dictating Member for pronouncement .......23.01.2026........ 6. Date on which the fair order comes back to the Sr.P.S./P.S ……23.01.2026…..…………. 7. Date on which the file goes to the Bench Clerk ……23.01.2026.….…. 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "