NITYA SHARMA,VIJAYAWADA V. ITO, WARD 2(1), GUNTUR

ITA 53/VIZ/2025

AI Insights

The case involves appeals by Nitya Sharma against the orders of the Commissioner of Income Tax (Appeals), which upheld the additions made by the Assessing Officer regarding unexplained cash deposits. The Assessing Officer had reopened the assessment for the years 2014-15 and 2015-16, following which additions were made under sections 69A and 115BBE of the Income Tax Act, 1961. The Tribunal found that the bank statements, crucial for deciding the case, were not considered by the lower authorities and thus remitted the matter back for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633221 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Assessee Lawyers: Y.PHANINDRANAG
• Keywords: Set aside; Principle of natural justice
• Section: 147; 148

Judgement Text

" आयकर अपीलीय अधिकरण, धिशाखापटणम ‘पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Visakhapatnam Bench, Visakhapatnam Before Shri V.Durga Rao, Hon’ble Judicial Member And Shri Balakrishnan.S., Hon’ble Accountant Member आ.अपी.सं /ITA No.53 & 96/Viz/2025 (निर्धारण वर्ा/Assessment Year: 2014-15 & 2015-16) Nitya Sharma Vijayawada PAN : AIZPM3442K Vs. Income Tax Officer Ward-2(1) Guntur निर्धाररती द्वधरध/Assessee by: Shri Y.Phanindranag, AR रधजस् व द्वधरध/Revenue by: Dr.Aparna Villuri, DR सुिवधई की तधरीख/Date of Hearing: 03/06/2025 घोर्णध की तधरीख/Date of Pronouncement: 09/06/2025 आदेश / ORDER PER V.DURGA RAO, J.M. These appeals filed by the assessee are directed against the orders passed by the Commissioner of Income Tax (Appeals) [“CIT(A)”], National Faceless Appeal Centre, Delhi, both dated 28.11.2024 and 19.11.2024 for the A.Y.2014-15 and 2015-16 respectively, which in turn arise from the orders passed by the AO u/s 147 r.w.s.144B of the Income Tax Act, 1961 (for short “the Act”) for the A.Y.2014-15 and 2015-16 respectively. Since the grounds raised in these appeals are identical in nature, 2 ITA No.53/Viz/2025 and 96/Viz/2025 Nitya Sharma these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. Facts are extracted from ITA No.53/Viz/2025, A.Y.2014-15, being the lead appeal. 2. The brief facts of the case are that the assessee is an individual, filed her return of income for the year under consideration by declaring total income of Rs.8,85,210/-. The return of income filed by the assessee was processed u/s 143(1) of the Act. Thereafter, the case was reopened by issue of notice u/s 148 for the reason that the assessee had made unexplained cash deposits of Rs.46,00,000/- in the bank. Subsequently, the AO has called upon the assessee to explain the sources for the cash deposits made and the assessee filed her replies dated 25.02.2022 and 16.02.2022. However, the AO was not satisfied with the explanation of the assessee and assessed the total income of the assessee at Rs.54,85,210/-, by making an addition of Rs.46,00,000/- u/s 69A r.w.s.115BBE of the Act. 3. Aggrieved by the order of the AO, the assessee filed an appeal before the CIT(A) and the CIT(A) upheld the addition made by the AO and dismissed the appeal filed by the assessee. 4. Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal by raising the following grounds of appeal: 3 ITA No.53/Viz/2025 and 96/Viz/2025 Nitya Sharma 4 ITA No.53/Viz/2025 and 96/Viz/2025 Nitya Sharma 5 ITA No.53/Viz/2025 and 96/Viz/2025 Nitya Sharma 5. When these appeals are taken up for hearing, the Ld.AR has submitted that neither the AO nor the CIT(A) has considered the bank account statements filed by the assessee vide page No.46 to 59 of the paper book. Therefore, he pleaded to afford an opportunity before the revenue authorities to substantiate assessee’s case with evidences in the interest of justice. 6. On the other hand, the Ld.DR submitted that there is nothing on record to suggest that the assessee had filed bank account statement before the AO/CIT(A). She, therefore, pleaded to uphold the addition made by the AO and dismiss the appeals filed by the assessee. 7. We have heard both the parties and also gone through the material available on record. We find that there is no bank account statement filed by the assessee before the revenue authorities. Under the above facts and circumstances of the case, we are of the opinion that the bank account statement filed by the assessee before us is the core material to decide the main issue involved in this appeal. We, therefore, keeping in 6 ITA No.53/Viz/2025 and 96/Viz/2025 Nitya Sharma view the principles of natural justice, set aside the order passed by the Ld.CIT(A) and remit the matter back to the file of the AO to adjudicate the issue denovo in accordance with law by affording an opportunity to the assessee. The assessee is also directed to adhere to the notices issued by the revenue authorities and cooperate by providing necessary information/evidences called for during the appeal proceedings. ITA No.96/Viz/2025, A.Y.2015-16 8. The facts and issues involved in this appeal filed by the assessee for A.Y 2015-16 are identical to the facts and issues, but for the figures, which we had considered in ITA No.53/Viz/2025 for the A.Y.2014-15. Therefore, the reasons given by us in preceding Para No.7 in the case of the assessee for the A.Y.2014-15 shall mutatis mutandis apply to this appeal, as well. Therefore, for similar reasons, we set aside the order passed by the learned CIT (A) and restore the issue back to the file of the Assessing Officer for denovo consideration. The Assessing Officer is directed to reconsider the issue in light of our discussion given herein above and decide the case of the assessee for both the assessment years mutatis mutandis. 7 ITA No.53/Viz/2025 and 96/Viz/2025 Nitya Sharma 9. In the result, appeals filed by the assessee are allowed for statistical purpose. Order pronounced in the Open Court on 09th June, 2025. Sd/- Sd/- (BALAKRISHNAN S.) ACCOUNTANT MEMBER (V.DURGA RAO) JUDICAL MEMBER Hyderabad, Dated 09th June, 2025 OKK, SPS Copy to: S.No Addresses 1 Ms.Nitya Sharma, 40-6-1/2A, Opp.IT Office, Fortune Murali Lane, Mogalrajapuram, Vijayawada 2 The Income Tax Officer, Ward-2(1), Vijayawada 3 The Pr.Commissioner of Income Tax, Visakhapatnam 4 The DR, ITAT Visakhapatnam Benches 5 Guard File TRUE COPY SENIOR PRIVATE SECRETARY ITAT, VISAKHAPATNAM "