DCIT Vs Datla Vivekananda Raju (ITAT Visakhapatnam)
The Income Tax Appellate Tribunal (ITAT), Visakhapatnam bench, recently delivered a significant verdict in the case of DCIT vs. Datla Vivekananda Raju, dismissing an appeal filed by the Revenue. The Tribunal’s decision, pronounced on June 9, 2025, upheld the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which had granted the assessee the benefit of telescoping for unexplained marriage expenditure against unaccounted income admitted by a group company.
The case originated from a search action conducted under Section 132 of the Income Tax Act, 1961, on January 10, 2020, at the registered office of M/s. Vijaynagar Biotech Pvt. Ltd., which also involved its director, Mr. Datla Vivekananda Raju, the assessee in this appeal. Following the search, the assessee’s case was centralized with the Central Circle–1, Visakhapatnam.
Background of the Case
For the Assessment Year 2018-19, Mr. Datla Vivekananda Raju had initially filed his return of income on August 20, 2018, declaring a total income of Rs. 28,27,550/-. Subsequent to the search, a notice under Section 153A of the Act was issued on February 25, 2021, requiring the assessee to file a fresh return. When the assessee failed to respond adequately, a notice under Section 142(1) was issued.
