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Hyderabad ITAT Remands ₹54.29 Lakh Addition, Cites Retirement Benefit Credits

Case Law Details

TaxGuru Citation
2026 taxguru.in 11596
Case Name
Namademudu Gurrapu Vs ITO (ITAT Hyderabad)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
2016-2017
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Namademudu Gurrapu Vs ITO (ITAT Hyderabad)

Hyderabad ITAT Remands ₹54.29 Lakh Bank-Deposit Addition: Majority of Credits Prima Facie Represented Government Employee’s Retirement Benefits

In Namademudu Gurrapu v. ITO, ITA No. 427/Hyd/2026 (AY 2016-17), order dated 21.08.2026, the Hyderabad ITAT considered an ex-parte reassessment of a State Government employee who had not filed his return. Based on information regarding time deposits, the AO made an addition of ₹55,33,842, comprising ₹54,28,609 of bank deposits and ₹1,05,233 of interest income. The CIT(A) also dismissed the appeal as the assessee did not participate in the proceedings.

Before the Tribunal, the assessee explained that he was a retired State Government employee and had received retirement benefits aggregating to ₹40,87,211. The table reproduced in the order (page 6) showed amounts including GPF maturity, leave encashment, commuted pension and retirement gratuity. He further pointed out that a ₹10 lakh credit dated 31.08.2015 had been reversed on the very same day, but the AO had nevertheless included it while computing the bank credits.

The ITAT found prima facie substance in these contentions. It specifically observed that the majority of the bank credits comprised retirement benefits received by the assessee as a State Government employee and that the reversed ₹10 lakh entry had wrongly been included by the AO. The remaining credits comprised pension and interest income.

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Author Info

CA Vijayakumar Shetty
Qualification: CA in Practice
Company: Shetty & Co, Chartered Accountants, Mangalore
Location: Mangalore, Karnataka
Articles Published: 7,019

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