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आयकर अपीलीय न्यायाधिकरण में, हैदराबाद ‘एस.एम.सी.’ बेंच, हैदराबाद

IN THE INCOME TAX APPELLATE TRIBUNAL

Hyderabad “SM-B” Bench, Hyderabad

, ,

्ቦी विजय पाल राि माननीय उपाध्य्ቌ एिं ्ቦी मंजूनाथ जी माननीय लेखा सदस्य

SHRI VIJAY PAL RAO, HON’BLE VICE PRESIDENT

AND

SHRI MANJUNATHA G, HON’BLE ACCOUNTANT MEMBER

आयकरअपीलसं./I.T.A.No.994/Hyd/2025

(निर्धारण वर्ा/ Assessment Year: 2018-19)

Vasavi Club, Vs. The Income Tax Officer,

Hyderabad. Ward -11(1),

Hyderabad.

PAN : AACAV2590D

(अपीला्ቕी/ Appellant) (्ቚ्ቓ्ቕी/ Respondent)

करदाता का ्ቚतततिति्቙/ : Shri R. Mohan Kumar,

Assessee Advocate.

Represented by

राज्ቭ का ्ቚतततिति्቙/ : B.K. Vishnu Priya, Sr. A.R.

Department Represented by

सुिवाई समा्቎ होिे की ततति/ : 11.12.2025

Date of Conclusion of Hearing

घोर्णध की तधरीख/ : 19.12.2025

Date of Pronouncement

O R D E R

PER MANJUNATHA G., A.M :

This appeal filed by the assessee is directed against the order

of the learned Commissioner of Income Tax (Appeals), National

Faceless Appeal Centre [in short “NFAC”], Delhi, dated

08.04.2025, pertaining to the assessment year 2018-19.

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ITA No.994/Hyd/2025

Vasavi Club, Hyderabad

2. The brief facts of the case are that, the assessee is an

Association of Persons in the name and style of “VASAVI CLUB”.

The assessee filed its return of income for the Assessment Year

2018-19 on 05.11.2018 declaring total income at Rs.Nil and

accreted income of Rs.19,10,482/- under Section 115TD of the

Income Tax Act, 1961. The return was processed under Section

143(1) of the Act on 12.02.2020 determining total income at Rs.Nil

and accreted income at Rs.19,10,482/- under Section 115TD of

the Act. The case was selected for scrutiny through CASS under

Limited Scrutiny to verify the issue of taxation of accreted income

of trust. Statutory notice under Section 143(2) of the Act, dated

21.09.2019 was issued and served upon the assessee.

Subsequently, notices under Section 142(1) of the Act, dated

30.12.2020 and 17.03.2021 were issued calling for various details.

There was no response from the assessee. Accordingly, show

cause notice under Section 144 of the Act was issued. Since the

assessee failed to furnish the required details, the A.O. completed

the assessment under Section 144 r.w.s. 144B of the Act, vide

order dated 20.04.2021 and assessed the accreted income at

Rs.23,88,100/- by making an addition of Rs.4,77,620/-.

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ITA No.994/Hyd/2025

Vasavi Club, Hyderabad

3. Aggrieved by the assessment order, the assessee preferred an

appeal before the Ld. CIT(A). Before the Ld. CIT(A), the assessee

filed appeal on 08.08.2023 against the assessment order dated

20.04.2021 with a delay of 810 days. The assessee filed a petition

for condonation of delay stating that, the delay occurred due to

mistake committed by the tax consultant, non-communication of

notices and passing of assessment order and that, the assessee

came to know about the assessment and demand only when the

department officials contacted the assessee for recovery of tax. It

was also stated by the assessee that it is a charitable institution

and that the affairs are managed by members on honorary basis.

4. The Ld. CIT(A), after considering the petition for condonation

of delay and the submissions made by the assessee, and after

taking note of the directions of the Hon’ble Supreme Court in the

case of Cognizance for Extension of Limitation, In re [2022] 134

taxmann.com 307 (SC), held that, even after excluding the Covid-

19 period, there was an effective delay of 526 days in filing the

appeal. The Ld. CIT(A) further held that the reasons given by the

assessee were vague and unsupported by any evidence and that

no affidavit of the tax consultant was filed. The Ld. CIT(A) held

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ITA No.994/Hyd/2025

Vasavi Club, Hyderabad

that the assessee has not shown sufficient cause within the

meaning of Section 249(3) of the Act and accordingly dismissed

the appeal in limine as barred by limitation without going into the

merits of the case. The relevant findings of the Ld. CIT(A) are as

under:

“5.0 The grounds of appeal and the material on