SHRI NEERAJ PANDEY,KANPUR vs. THE INCOME TAX OFFICER, WARD 2(2)(3), KANPUR

ITA 922/LKW/2025Status: DisposedITAT Lucknow25 May 2026AY 2017-186 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that once an addition is deleted by a superior appellate authority, the original addition ceases to exist. Therefore, the AO cannot initiate rectification proceedings under Section 154 to modify or enhance a non-existent addition.

What were the facts?

The assessee's income was reopened under Section 147 due to cash deposits during demonetization. The AO added Rs. 21,22,500/- as unexplained income, but this was deleted by the CIT(A). Subsequently, the AO made a rectification under Section 154, enhancing the assessment by Rs. 2,45,500/-.

What were the issues?

Whether rectification proceedings under Section 154 can be initiated to enhance an addition that has already been deleted by a higher appellate authority.

Which sections of the Income-tax Act were involved?

Section 147,Section 69A,Section 144B,Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SMC BENCH, LUCKNOW

Before: SHRI. SUDHANSHU SRIVASTAVA

This appeal has been preferred by the Assessee against the order dated 28.10.2025, passed by the Addl/JCIT(A)-4, Mumbai for Assessment Year 2017-18. 2.0 The brief facts of the case are that the assessee filed his return of income for the year under consideration on 31.10.2017 declaring a total income of Rs.5,44,070/-. The case of the assessee was reopened under section 147 of the Income Tax Act, 1961 (hereinafter called 'the Act’) on the basis of information in possession of the Department that the assessee had deposited cash of Rs.21,22,000/- in his Bank Accounts No.5711732851 and 9811993242, maintained with Kotak Mahindra Bank during the demonetization period. The Assessing Officer (AO) treated the ITA No.922/LKW/2025 cash deposits of Rs.21,

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →