Asha Agarwal Vs ITO (ITAT Allahabad)
In the case of Asha Agarwal vs. ITO, the ITAT Allahabad remanded the matter to the Assessing Officer (AO) due to a mix-up in the assessment year by the Commissioner of Income Tax (Appeals) [CIT(A)]. The dispute arose from an addition of ₹33.29 lakh made under Section 69A of the Income Tax Act, 1961, for unexplained cash deposits, along with a 10% addition of ₹49.27 lakh from non-cash bank deposits. The CIT(A), while adjudicating the case for Assessment Year (AY) 2017-18, mistakenly relied on submissions and data for AY 2018-19.
The assessee argued before the tribunal that this oversight denied her natural justice and the opportunity to present her case adequately. The department also acknowledged the error, agreeing to a fresh review of the facts. The ITAT deemed it unjust for the assessee to suffer due to administrative errors and restored the case to the AO for a fresh assessment, allowing the assessee to provide relevant evidence for AY 2017-18. The appeal was allowed for statistical purposes, emphasizing the importance of accuracy and fairness in tax proceedings.
FULL TEXT OF THE ORDER OF ITAT ALLAHABAD
In this case, the present appeal emanates from the order under section 250 of the Income Tax Act, 1961 (hereinafter the ‘Act’) dated 1.07.2024. It is seen from the records that the ld. AO passed an order under section 144 on account of three deposits in bank accounts of the assessee as under:-
i. 1883000/-
ii. 350000/-
iii. 1096000/-
These three figures totaling to Rs.3329000/- were added back under section 69A of the Act. In addition to this the ld. AO also added an amount of Rs.4927360/- being 10% of the deposits in the bank account other than cash, treating the same as unexplained investment.
