SMT. MAMTA MAURYA,BALLIA vs. INCOME TAX OFFICER - 1(15), GORAKHPUR

PER ANADEE NATH MISSHRA:A.M.

(A) This appeal has been filed by the assessee against the impugned appellate order of learned CIT(A)/NFAC, Delhi vide order dated 03.03.2026 for the AY 2017-18. The assessee has raised the following grounds of appeal: “1. General Ground 1.1 The order passed by the Ld. Commissioner of Income Tax (Appeals) is bad in law, contrary to facts and evidence on record, arbitrary, unjustified and liable to be quashed. 2. Violation of Principles of Natural Justice

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2.1 The Ld. CIT(A) erred in confirming the assessment order passed by the Ld. Assessing Officer without providing proper and effective opportunity of being heard. 2.2 The Ld. Assessing Officer passed the assessment order ex-parte on the very same day i.e. 20.09.2021, without considering the adjournment request filed by the Appellant. 2.3 The action of the authorities below is in gross violation of principles of natural justice, rendering the entire assessment void ab initio. 3. Invalid Reopening under Section 148 (Erstwhile Regime) 3.1 The Ld. CIT(A) erred in upholding the reopening of assessment under section 147/148 of the Act, which is bad in law and without jurisdiction. 3.2 The notice under section 148 dated 20.09.2019 has been issued merely on the basis of SFT/Account Information stating that the Appellant had deposited cash of Rs. 11,01,000/- during demonetization period. 3.3 The reopening is mechanical and without independent application of mind, as there is no tangible material to form a valid "reason to believe" that income has escaped assessment. The Ld AO failed to appreciate that Mere information of cash deposits does not constitute "reason to believe & There must be live nexus between material and escapement of income/ 3.4 The reopening is based on borrowed satisfaction and suspicion, which is not permissible under law. 4. Assessment Completed Without Considering Reply 4.1 The Ld. Assessing Officer has erred in completing the assessment without considering the reply and documentary evidences submitted by the Appellant. 4.2 The Appellant had duly explained the source of cash deposits along with supporting documents; however, the same were ignored without any rebuttal or enquiry. 4.3 The assessment order is therefore arbitrary and liable to be quashed. 5. Addition under Section 69A - Unjustified 5.1 The Ld. CIT(A) erred in confirming the addition of ₹11,01,000/- under section 69A of the Act.

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5.2 The addition has been made despite the fact that: (i) The source of cash deposits was duly explained (ii) The transaction is supported by documentary evidences including agreement, cancellation deed, and bank statements (iii) The amount was received from a known and identifiable source (father-in-law) 5.3 The authorities below failed to appreciate that once the source is explained, section 69A cannot be invoked. Both the Lower Authorities failed to appreciate that in the present case, the Appellant has fully discharged the burden by establishing: (a) Identity of source Father-in-law (Shri Radhey Shyam Ram) (b) Genuineness of transaction Agreement to sale, cancellation agreement (c) Creditworthiness Bank statement evidencing FDR proceeds (d) Once the source is explained with documentary evidence, the provisions of section 69A cannot be invoked. 5.3 The addition is based on mere suspicion and conjectures, without any adverse material. No Independent Enquiry Conducted

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7.2 The observations of the Ld. CIT(A) are contrary to facts, evidence and settled legal principles, and therefore unsustainable. 8. Without Prejudice - Benefit of Doubt / Human Probability 8.1 Without prejudice, the explanation offered by the Appellant is reasonable, plausible and supported by human probabilities, being a family transaction. 8.2 The addition deserves to be deleted on this ground alone. 9. Right to Add or Amend Grounds 9.1 The Appellant craves leave to add, amend, alter or withdraw any of the above grounds at the time of hearing.

(B) In this case, assessment order dated 20.09.2021 was passed by the Assessing Officer under section 147 r.w.s. 144B of the Income Tax Act, 1961 (the Act) wherein the assessee’s income was determined at Rs. 11,01,000/-. The assessee’s appeal against the assessment order was dismissed by the Learned CIT(A) vide impugned appellate order dated 03.03.2026. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 03.03.2026.

(C) At the time of hearing, the Learned Authorized Representative for the assessee submitted that the impugned appellate order and the assessment order were passed without providing reasonable opportunity to the assessee. He submitted that the issues in dispute regarding additions made in the assessment order should be restored back to the file of the Assessing Officer with the direction to pass denovo order in accordance with law after providing reasonable opportunity to the assessee. The Learned Departmental Representative for Revenue expressed no objection to this. In view of the foregoing, after hearing both sides and after due consideration of materials on

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record; the issues in dispute regarding additions made in the assessment order are restored back to the file of the Assessing Officer, with the direction to pass denovo order in accordance with law, after providing reasonable opportunity to the assessee.

(D) All grounds of appeal are treated as disposed off, in accordance with the aforesaid directions. For statistical purposes, the appeal is partly allowed.

This order is deemed to be pronounced on 20/07/2026 in accordance with Rule 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.

Sd/- (ANADEE NATH MISSHRA) Accountant Member Date: 20/07/2026 SK, Sr.PS Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A)

Senior Private Secretary Income Tax Appellate Tribunal Lucknow