VAMSIRAM BUILDERS & DEVELOPERS PRIVATE LIMITED (FORMERLY VAMSIRAM BUILDERS),HYDERABAD V. ACIT., CENTRAL CIRCLE-1(1), HYDERABAD

ITA 829/HYD/2025

AI Insights

M/s. Vamsiram Builders & Developers Pvt. Ltd. filed an appeal against the order of the Learned Commissioner of Income Tax (Appeals)-11, Hyderabad, which had dismissed their earlier appeal for non-prosecution. The dismissal was due to the assessee's failure to comply with notices during the appellate proceedings. The Tribunal, considering the principles of natural justice and the assessee's expressed willingness to prosecute the appeal, decided to grant another opportunity for the case to be heard on its merits. The Tribunal emphasized the need for a liberal approach in such circumstances, particularly when the appeal had not been adjudicated on merits previously.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779515 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2021-2022
• Appeal Filed On: 14-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SACHIN KUMAR
• Assessee Lawyers: M.V. PRASAD
• Keywords: Set aside; Principle of natural justice
• Section: 143(3)

Judgement Text

" आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B’ Bench, Hyderabad श्री विजय पाल राि, उपाध् यक्ष एिं श्री मिुसूदन सािडिया, लेखा सदस् य क े समक्ष । BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आ.अपी.सं /ITA No.829/Hyd/2025 (निर्धारण वर्ा/Assessment Year:2021-22) M/s. Vamsiram Builders & Developers Pvt. Ltd., (Formerly Vamsiram Builders) Hyderabad. PAN: AACFV8465E Vs. Asst. Commissioner of Income Tax, Central Circle 1(1), Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri M.V. Prasad, C.A. रधजस् व द्वधरध/Revenue by: Dr. Sachin Kumar, SR-DR सुिवधई की तधरीख/Date of hearing: 15/10/2025 घोर्णध की तधरीख/Pronouncement: 17/10/2025 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M. : This appeal is filed by M/s. Vamsiram Builders & Developers Pvt. Ltd. (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals)-11, Hyderabad (“Ld. CIT(A)”), dated 13.03.2025 for the A.Y. 2021-22. 2. The grounds raised by the assessee are as under : Printed from counselvise.com ITA No.829/Hyd/2025 2 Printed from counselvise.com ITA No.829/Hyd/2025 3 3. The brief facts of the case are that, the assessee had filed an appeal before the Ld. CIT(A) against the order passed by the Learned Assessing Officer (“Ld. AO”) under section 143(3) read with section 144B of the Income Tax Act, 1961 (“the Act”) dated 26.12.2022 for the Assessment Year 2021–22. However, during the course of appellate proceedings, the assessee failed to comply with the notices issued by the Ld. CIT(A). Consequently, the Ld. CIT(A) dismissed the appeal of the assessee for non-prosecution. 4. Aggrieved by the said order of Ld. CIT(A), the assessee has preferred the present appeal before this Tribunal. The Ld. Authorised Representative (“Ld. AR”) submitted that due to some unavoidable reasons, the assessee could not appear before the Ld. CIT(A) or properly prosecute its case on merits. It was contended that the assessee did not gain any advantage by avoiding the proceedings or by not participating in the appellate process. The Ld. AR therefore pleaded that, in the interest of justice and in accordance with the Printed from counselvise.com ITA No.829/Hyd/2025 4 principles of natural justice, the assessee may be given one more opportunity to present its case on merits before the Ld. CIT(A). Accordingly, it was prayed that the matter may be restored to the file of the Ld. CIT(A) for fresh adjudication. 5. Per contra the Learned Departmental Representative (Ld. DR) opposed the submissions of the assessee and relied upon the order of the Ld. CIT(A). It was submitted that sufficient opportunities had already been provided by the Ld. CIT(A), which the assessee failed to avail. Hence, according to the Ld. DR, there was no justification for providing another opportunity. 6. We have heard both the parties and perused the material available on record. It is noted that the Ld. CIT(A) dismissed the appeal of the assessee for non-prosecution, accordingly the matter could not be adjudicated on merits. In our considered view, when an assessee expresses willingness to prosecute its appeal and pleads for one more opportunity, a liberal approach is warranted, particularly when the appeal has not been adjudicated on merits. Therefore, in the interest of justice, we are of the view that one more opportunity should be granted to the assessee to present its case before the Ld. CIT(A). Accordingly, the impugned order of the Ld. CIT(A) is set aside, and the matter is restored to the file of the Ld. CIT(A) with the directions that the Ld. CIT(A) shall provide adequate opportunity of Printed from counselvise.com ITA No.829/Hyd/2025 5 being heard to the assessee and adjudicate the appeal on merits, in accordance with law. The assessee shall be at liberty to furnish necessary submissions and evidences in support of its claims. The assessee is also directed not to seek unnecessary adjournments and to cooperate in expeditious disposal of the appeal. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 17th Oct., 2025. Sd/- Sd/- (VIJAY PAL RAO) (MADHUSUDAN SAWDIA) VICE PRESIDENT ACCOUNTANT MEMBER Hyderabad, Dated: 17.10.2025. * Reddy gp Copy of the Order forwarded to : 1. M/s. Vamsiram Builders & Developers Pvt. Ltd., 8th Floor, Jyothi Lorven, Road No.45, Jubilee Hills, Hyderabad-500 033 2. The ACIT, Central Circle 1(1), Hyderabad. 3. Pr.CIT (Central), Hyderabad. 4. DR, ITAT, Hyderabad. 5. Guard file. BY ORDER, Printed from counselvise.com "