VISHNUCHARAN SUNKU,HYDERABAD. V. ITO., WARD- 4(3), HYDERABAD

ITA 871/HYD/2024

AI Insights

The case involves Vishnucharan Sunku, who appealed against the order of the Commissioner of Income Tax (Appeals) confirming the addition of Rs. 1,48,53,360 to his income for the Assessment Year 2012-13. The addition was initially made by the Assessing Officer due to unexplained cash deposits and non-disclosure of professional receipts. The CIT(A) upheld this addition despite the assessee's claims of being unable to access documents due to the sealing of his office premises amid personal disputes and ongoing litigation with Tirumala Tirupati Devastanams (TTD). The Tribunal noted that the CIT(A) had not adequately considered the assessee's circumstances and the ongoing litigation, leading to the decision to remand the case back to the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469626 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SACHIN KUMAR
• Assessee Lawyers: SAI PRASAD
• Keywords: Set aside
• Section: 147; 148; 144; 142(1)

Judgement Text

"आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ मɅ IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI MANJUNATHA. G, ACCOUNTANT MEMBER & SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER आ.अपी.सं / ITA No. 871/Hyd/2024 (Ǔनधा[रण वष[ / Assessment Year: 2012-13) Vishnucharan Sunku, Hymayath Nagar, Hyderabad. [PAN : AFVPS5500B] Vs. Income Tax Officer, Ward-4(3), IT Tower, Masab Tank, Hyderabad. अपीलाथȸ / Appellant Ĥ× यथȸ / Respondent Ǔनधा[ǐरती ɮवारा/Assessee by: Shri K.A. Sai Prasad, AR राजè व ɮवारा/Revenue by: Dr. Sachin Kumar, Sr. AR सुनवाई कȧ तारȣख/Date of hearing: 16/01/2025 घोषणा कȧ तारȣख/Pronouncement on: 23/01/2025 आदेश / ORDER PER K. NARASIMHA CHARY, J.M: Aggrieved by the order dated 02/08/2024 passed by the learned Commissioner of Income Tax (Appeals), NaƟonal Faceless Appeal Centre, Delhi ITA No. 871/Hyd/2024 Vishnucharan Sunku Page 2 of 5 (“Ld. CIT(A)”), in the case of Vishnucharan Sunku (“the assessee”), assessee preferred this appeal. 2. Briefly stated the facts of the case are that assessee filed his return of income for the Assessment Year 2012-13 on 17/06/2013. On the reason that assessee made huge cash deposits in his bank account and further did not offer the professional receipts to tax, noƟce U/s. 148 of the Act was issued on 28/03/2019 and subsequently noƟce U/s 142(1) of the Act was also issued to the assessee however, there was no response from the assessee. Therefore, the learned Assessing Officer, in the absence of any explanaƟon with respect to the source of cash deposits made in his bank account, completed the assessment U/s. 144 read with secƟon 147 of the Income Tax Act, 1961 (“the Act”) and made addiƟon of Rs. 1,48,53,360/- which includes the professional fee received by the assessee from M/s. Sree Rayalaseema Alkalies and Allied Chemicals Ltd and passed the assessment order dated 11/12/2019. Aggrieved, assessee preferred an appeal before the learned CIT(A). 3. Learned CIT(A) confirmed the addiƟon of Rs. 1,48,53,360/- made by the learned Assessing Officer. While dismissing the appeal of assessee, learned CIT(A) did not accept the contenƟon of assessee that due to closure of his office premises, assessee was unable to obtain the documents to file the submissions during the First Appellate Proceedings and a Writ PeƟƟon was also pending before the Hon’ble High Court of Telangana. Learned CIT(A) further observed that assessee’s contenƟon is not tenable as the assessee’s Writ PeƟƟon before the Hon’ble High Court of Telangana was already disposed of. Aggrieved, assessee filed the present appeal before the Tribunal. 4. Learned Authorized RepresentaƟve (“learned AR”) submiƩed before us that since the Writ PeƟƟon filed by the assessee before the Hon’ble Telangana High Court was dismissed, the assessee filed a Special Leave PeƟƟon before the Hon’ble Supreme Court of India with respect to access to the premises for collecƟng belongings and parƟculars. Learned CIT(A) without enquiring the ITA No. 871/Hyd/2024 Vishnucharan Sunku Page 3 of 5 assessee whether there is any further acƟon from the assessee’s aŌer the dismissal of the Writ PeƟƟon by the Hon’ble High Court of Telangana i.e., if any appeal is pending before the Hon’ble Apex Court, arbitrarily adjudicated the case and dismissed the appeal of the assessee. Therefore, the learned AR pleaded for remiƫng the maƩer to the file of the learned Assessing Officer in order to provide one more opportunity to the assessee to represent his case. 5. Per contra, learned Departmental RepresentaƟve (“learned DR”) relied on the orders of the lower authoriƟes. 6. We have gone through the record in the light of the submissions made on either side. Record clearly establishes that when the assessee sought adjournment on the ground that due to some disputes of his wife, namely, Smt. S Vaishnavi with the Tirumala TirupaƟ Devastanams (“TTD”) due to which the office space of his wife was sealed by the authoriƟes and the pending liƟgaƟon, learned CIT(A) verified from the website of the Hon’ble Telangana High Court and found that the peƟƟon of his wife was decided by the Hon’ble High Court by order dated 3/5/2024 in the learned CIT(A) concluded thereon that a false statement was made by the assessee to seek the adjournment and therefore proceed ex-parte and decide the maƩer behind the assessee. 7. A perusal of the order dated 23/9/2020 in Special Leave PeƟƟon No. 21205/2025 before the Hon’ble Supreme Court, clearly establishes that there is some liƟgaƟon in respect of which the relief was sought by the assessee against the TTD, and such relief relates to access to the premises in quesƟon for collecƟon of her belongings, in parƟcular, the documents. Further the website screenshots filed by the assessee show that as against the order of the Hon’ble Telangana High Court the assessee preferred appeal before the Supreme Court in the same is pending. The photographs filed by the assessee further show that the premises in which the assessee claims the documents were under lock and key. ITA No. 871/Hyd/2024 Vishnucharan Sunku Page 4 of 5 8. All these circumstances clearly show that there is a genuine dispute regarding the premises belonging to the TTD and that is reason why the assessee is unable to have access to record to prosecute the first appeal diligently and that is the reason why the assessee sought adjournment before the learned CIT (A), but the learned CIT(A) on verificaƟon of the website of the Hon’ble High Court of Telangana, but without seeking further informaƟon from the assessee as to the stage of liƟgaƟon concluded that the liƟgaƟon was complete and the assessee sought adjournment on false statement. It is clear that the learned CIT(A) misled himself on self-enquiry without proper verificaƟon from the parƟes. 9. With this view of the maƩer, we find that there is sufficient reason for the assessee to seek adjournment before the learned CIT(A) and the maƩer needs to be considered aŌer affording some more opportunity to the assessee. We, therefore, set aside the impugned order and restore the same to the file of the learned Assessing Officer for considering it afresh, aŌer affording reasonable opportunity to the assessee. Grounds are answered accordingly. 10. In the result, appeal of the assessee is allowed for staƟsƟcal purpose. Order pronounced in the open court on the 23rd January, 2025. Sd/- Sd/- (MANJUNATHA. G) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated:23/01/2025 OKK ITA No. 871/Hyd/2024 Vishnucharan Sunku Page 5 of 5 Copy forwarded to: 1. Vishnucharan Sunku C/o. KatrapaƟ & Associates, 1-1-298/2/B/3, Sowbhagya Avenue Apts, 1st Floor, Ashok Nagar, Street No.1, Hyderabad, Telangana-500020. 2. Income Tax Officer, Ward-4(3), IT Towers, AC Guards Masab Tank, Hyderabad, Telangana. 3. Pr. CIT, Hyderabad. 4. DR, ITAT, Hyderabad. 5. GUARD FILE. TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD "