MANJU AGARWAL,GWALIOR V. INCOME TAX OFFICER, WARD 1(2), GWALIOR, GWALIOR

ITA 16/AGR/2025

AI Insights

The case involves Manju Agarwal, the appellant, who contested the additions made to her income assessment by the Income Tax Officer, Ward-1(2), Gwalior, under section 144 of the Income-tax Act, 1961. The additions were based on unexplained cash deposits in her bank account during the demonetization period. The National Faceless Appeal Centre (NFAC) upheld these additions, leading to the current appeal. The primary contention revolves around the incorrect linkage of bank transactions to an old PAN, despite the assessee having filed her returns with a new PAN. The tribunal has decided to restore the case to the AO for a thorough re-examination of these transactions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781722 (ITAT-AGRA)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 15-01-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR
• Assessee Lawyers: ASHOK VIJAYWARGIYA
• Section: 144; 133(6)

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “SMC”: AGRA BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER (Through virtual hearing) ITA No. 16/AGR/2025 (Assessment Year: 2017-18) Manju Agarwal, W/o. Sameer Agarwal, Near Surya Tower, Old High Court Road, Gwalior Vs. Income Tax Officer, Ward-1(2), Gwalior (Appellant) (Respondent) PAN: AFEPA7981H Assessee by : Shri Ashok Vijaywargiya, CA Revenue by: Shri Anil Kumar, Sr. DR Date of Hearing 18/09/2025 Date of pronouncement 30/09/2025 O R D E R 1. The appeal in ITA No. 16/AGR/2025 for AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] dated against the order of assessment passed u/s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 19.12.2019 by the Assessing Officer, ITO, Ward-1(2), Gwalior (hereinafter referred to as ‘ld. AO’). 2. The assessee has raised the following grounds of appeal:- 1. That, on the facts and circumstances of the case and in law, and in any view of the matter, the Ld. Authorities below have erred in making and upholding the addition of Rs. 5,47,766/-(8% of Rs. 68,47,079/-) as alleged unexplained money without considering the written submission made during assessment. proceedings and statement of facts given in Form No. 35 and written submission during appellate proceedings in correct perspective. 2. That, on the facts and circumstances of the case and in law, and in any view of the matter, the Ld. Authorities below have erred in making and upholding the addition of Rs. 7,73,760/-as alleged unexplained money without considering the written submission made during assessment proceedings and Printed from counselvise.com ITA No. 16/AGR/2025 Manju Agarwal Page | 2 statement of facts given in Form No. 35 and written submission during appellate proceedings in correct perspective. 3. That, on the facts and circumstances of the case and in law, and in any view of the matter, the Ld. Authorities below have erred in not considering Income Tax Return filed on 30.03.2018 with another PANANMPA 1310N declaring total income of Rs. 418610/-. 4. That, on the facts and circumstances of the case and in law, and in any view of the matter, the Ld. authorities below have erred in not allowing the reasonable and proper opportunity of hearing by way of opportunity of personal hearing to substantiate the contents prior to drawing adverse inference while passing the impugned appeal order. 5. That, the appellant craves leave to add, amend, withdraw any ground (s) of appeal before and/or at the time of hearing.” 3. I have heard the rival submissions and perused the materials available on record. The Learned AO observed that there has been some huge cash deposits made in the bank account maintained with UCO bank vide Account Number 07460510000014 during the year, which also included certain cash deposits made by the assessee during the demonetization period. Since the said deposit was very abnormal, the Learned AO proceeded to treat the same as unexplained money and added a sum of Rs. 7,73,760/- in the assessment completed under section 144 of the Act on 19-12-2019. The Learned CITA dismissed the appeal of the assessee as unadmitted by applying the provisions of section 249(4)(b) of the Act, stating that assessee had not deposited the advance tax. 4. Before me, the Learned AR submitted that assessee was issued two PANs and return of income was furnished by the assessee with new PAN. However, one bank account was linked with old PAN and accordingly, the bank account transactions which were linked with the old PAN were separately obtained by the Learned AO by getting information under section 133(6) of the Act directly from the bank and those transactions were subjected to Printed from counselvise.com ITA No. 16/AGR/2025 Manju Agarwal Page | 3 addition in the assessment. He fairly stated that the transactions in the said bank account had been duly considered by the assessee in the return of income filed with the new PAN. He pleaded for factual verification of this aspect by the Learned AO. No serious objections were raised by the Learned DR in this regard. It is not in dispute that assessee had filed her return of income with the new PAN. Considering the submissions made by the Learned AR which is considered as a statement made from the Bar, I am inclined to restore this entire appeal to the file of Learned AO for de novo adjudication in accordance with law with a direction to verify whether the bank account linked with old PAN is considered by the assessee in the return of income filed with the new PAN. The assessee is also directed to cooperate with the Learned AO for expeditious disposal of this set-aside assessment proceedings and also for surrender of old PAN. The assesee is at liberty to file fresh evidences, if any, in support of her contentions. With these directions and observations, the appeal is restored to the file of Learned AO and grounds are allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 30/09/2025. -Sd/- (M. BALAGANESH) ACCOUNTANT MEMBER Dated: 30/09/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) Printed from counselvise.com ITA No. 16/AGR/2025 Manju Agarwal Page | 4 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "