Prem Raj Rayepudi, Hyderabad The Assistant Commissioner of Income Tax, Circle-1(1),, Vijayawada

The Income Tax Appellate Tribunal allowed the appeal of Prem Raj Rayepudi against an addition of Rs. 35,54,680 related to share investments. The original assessment was made ex-parte as the assessee did not respond to notices. The Tribunal set aside the lower authorities' orders and remitted the matter back to the Assessing Officer for a fresh assessment, granting the assessee an opportunity to be heard, as the notices may not have been served due to a change of address. The assessee is directed to cooperate with the department.

IN THE INCOME TAX APPELLATE TRIBUNAL
VISAKHAPATNAM BENCH, VISAKHAPATNAM
(Through web-based video conferencing platform)

BEFORE SHRI N.K. CHOUDHRY, HON’BLE JUDICIAL MEMBER &
SHRI D.S. SUNDER SINGH, HON'BLE ACCOUNTANT MEMBER

I.T.A. No. 24/VIZ/2020
(Asst. Year :2011-12)

Prem Raj Rayepudi,
Flat no.301, Majonita
Paradise, Plot 66,
Dattatreya Colony,
Asifnagar, Hyderabad.
PAN No. ANZPR 8948 J
(Appellant) 

vs. 

ACIT, Circle-1(1)
Vijayawada.
(Respondent)

Assessee by : None.
Department by : Smt.Mini Chandran,Sr.DR

Date of hearing : 22/04/2021.
Date of pronouncement : 29/04/2021.

O R D E R

PER D.S. SUNDER SINGH, ACCOUNTANT MEMBER

This appeal has been preferred by the assessee against the order dated 23/10/2019 passed by the Ld.Commissioner of Income Tax (Appeals)-2 [for short, “ld.CIT(A)”],Guntur u/sec. 250(6) of the Income Tax Act, 1961 (hereinafter referred to as "Act") for the A.Y. 2011-12.

2. All the grounds of appeal are related to the addition made by the AO to the extent of Rs. 35,54,680/- relating to investment in shares of M/s. Srikara Parentarals Pvt. Ltd. which was sustained by the ld.CIT(A). The AO completed the assessment exparte u/sec. 144 for non-response of the assessee for the notices issued by the AO. The ld.CIT(A) confirmed the order of the AO exparte since there was no response from the assessee. Against which, the assessee filed the appeal before this Tribunal and requested to remit the matter back to the file of the AO.

3. We have heard ld.DR and the material placed on record. We do not appreciate the attitude of the assessee in not complying with the notices issued by the authorities. However, since, the assessee pleaded that the notices were not served to him due to change in the address, in the interest of justice we are inclined to give one more opportunity to the assessee. Therefore, we set aside the orders of the lower authorities and remit the matter back to the file of the AO to redo the assessment afresh on merits after giving proper opportunity to the assessee. The assessee is also directed to cooperate with the department and comply with the notices without fail.

4. In the result, appeal filed by the assessee stands allowed for statistical purpose.

Order Pronounced in open Court on this 29 th day of April, 2021.

Sd/-                                        sd/-
(N.K. CHOUDHRY)              (D.S. SUNDER SINGH)
Judicial Member                  Accountant Member

Copy to:
1. The Assessee -Prem Raj Rayepudi, Flat no.301, Majonita Paradise, Plot 66, Dattatreya Colony, Asifnagar,Hyderabad.
2. The Revenue –ACIT, Circle-1(1), Vijayawada.
3. The Pr.CIT, Vijayawada.
4. The CIT(A)-2, Guntur.
5. The D.R., Visakhapatnam.
6. Guard file.

By order
(VUKKEM RAMBABU)
Sr. Private Secretary,
ITAT, Visakhapatnam.