INCOME TAX OFFICER 2(1)(5) ORAI, ORAI, DISTT. JALAUN V. VIPLAV SINGH, DISTT. JALAUN

ITA 411/AGR/2025

AI Insights

The case involves an appeal by the Income Tax Officer, Ward-2(1)(5), Orai against Viplav Singh concerning the assessment year 2018-19. The appeal arose from the order of the National Faceless Appeal Centre, Delhi, which deleted an addition of Rs 3,27,09,800 on account of unexplained credits in the bank account of the assessee. The Assessing Officer had initially added this amount as unexplained credits following a reassessment under section 147 of the Income-tax Act, 1961, due to non-compliance by the assessee in filing his return and responding to notices. The CIT(Appeals) accepted the assessee's explanation that the bank transactions were related to his franchise business with a Regional Rural Bank, where he acted as a bailee for transferring customer deposits to the bank, entitled only to a commission.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831889 (ITAT-AGRA)
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2026
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 19-08-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Additional evidence; Reassessment proceedings; Unexplained cash credit
• Section: 147; 148; 144

Judgement Text

" Page | 1 INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “DB”: AGRA BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 411/AGR/2025 (Assessment Year: 2018-19) ITO, Ward-2(1)(5), Orai Vs. Viplav Singh, 2806, Churkhi Road Orai (Jalaun), UP (Appellant) (Respondent) PAN: FHXPS6177R Assessee by : None Shri Sukesh Kumar Jain, CIT DR Revenue by: Date of Hearing 22/01/2026 Date of pronouncement 22/01/2026 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No. 411/AGR/2025 for AY 2018-19, arises out of the order of the National Faceless Appeal Centre, Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 23.06.2025 for AY 2018-19 against the order of assessment passed u/s 147 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 27.04.2023 by the ld Assessing Officer, NFAC, Delhi (hereinafter referred to as ‘ld. AO’). 2. None appeared on behalf of the assessee. As directed by the Bench on previous occasion, the ld DR placed on record the report of having served the notice on the assessee. From the said report, we find that the assessee had duly received the notice. Despite that, no one was present on behalf of the assessee. Hence we proceed to dispose of this appeal on hearing the ld DR and based on materials available on record. Printed from counselvise.com ITA No. 411/AGR/2025 Viplav Singh Page | 2 3. The only issue to be decided in this appeal is as to whether the ld CITA was justified in deleting the addition made in the sum of Rs 3,27,09,800/- on account of unexplained credits in the bank account in the facts and circumstances of the instant case. 4. We have heard the ld DR and perused the materials available on record. The assessee has not filed his return of income for AY 2018-19. The ld Assessing Officer got information that there was huge cash withdrawals made by the assessee from the bank to the tune of Rs. 3,27,09,800/- apart from additional information that assessee was in receipt of some commission/ brokerage income from M/s. Vision India Software Exports Ltd of Rs. 1,57,999/-. Accordingly, the ld Assessing Officer sought to reopen the assessment u/s 147 of the Act vide issuance of notice u/s 148 of the Act on 25.03.2022. In response to the said notice no return of income was filed by the assessee. There was no compliance made by the assessee to the various notices issued during the course of reassessment proceedings which led to framing of assessment u/s 144 r.w.s. 147 r.w.s. 144B of the Act on 02.03.2023 adding the entire credits in the bank account as unexplained in the sum of Rs. 3,27,09,800/- Further, commission/ brokerage income received by the assessee of Rs. 1,57,999/- was also added in the reassessment. 5. Before the ld CIT(Appeals) the assessee filed detailed submission stating that he has a small franchise of Regional Rural Bank during the year and that the deposit in the bank account represent amounts received by him from various customers of bank and withdrawals thereon are amounts paid to the bank. The assessee submitted that he holds the receipt amounts from customers of the bank as bailee of bank and transfer the said amounts to the bank. The assessee would be entitled only for commission on this transaction which would be his income. These submissions were accepted as sacrosanct by the ld CIT(Appeals) without referring the matter to the ld Assessing Officer by Printed from counselvise.com ITA No. 411/AGR/2025 Viplav Singh Page | 3 seeking for a remand report. The ld Assessing Officer was not provided any opportunity to examine the contentions of the assessee and all the evidences furnished by the assessee were filed for the first time before the ld CIT(A). Before us the ld DR vehemently argued that there was a huge violation of provisions of Rule 46A of the Income Tax Rules wherein the ld Assessing Officer was not provided any opportunity to examine the additional evidences furnished by the assessee before the ld CIT(Appeals) for the first time and the assessment was framed ex parte due to non filing of details and complete non cooperation from the side of the assessee. Hence, he prayed for setting aside all this appeal to the file of the ld Assessing Officer. 6. Considering the aforesaid contentions, we hold that the ld Assessing Officer should be given adequate opportunity to examine the evidences filed by the assessee in support of this contentions. Hence, we deem it fit and appropriate to restore this appeal to the file of the ld Assessing Officer for de novo adjudication in accordance with law. Accordingly, grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal of the revenue is allowed for statistical purposes. Order pronounced in the open court on 22/01/2026. -Sd/- -Sd/- (SUNIL KUMAR SINGH ) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 22/01/2026 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT Printed from counselvise.com ITA No. 411/AGR/2025 Viplav Singh Page | 4 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "