AGRANI GHOSH,MADHEPURA vs. ITO, WARD - 3(5), SAHARSA

ITA 221/PAT/2026Status: DisposedITAT Patna08 June 2026AY 2017-184 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal observed that the AO may have made a double addition by including demonetisation cash deposits in total credits and also adding them separately under Section 68. The Tribunal remitted the issue back to the AO for de-novo adjudication.

What were the facts?

The Assessing Officer (AO) initiated reassessment proceedings based on information about cash deposits during demonetisation. The AO treated cash deposits during demonetisation as income under Section 68 and estimated income at 8% on total bank deposits under Section 44AD.

What were the issues?

Whether the AO made a double addition by treating demonetisation cash deposits as income under Section 68 and also estimating profit under Section 44AD on total bank credits. The AO's estimation of profit without considering the nature of business or source of deposits.

Which sections of the Income-tax Act were involved?

Section 68,Section 44AD,Section 147,Section 148,Section 133(6),Section 144,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

For Appellant: Shri Abhi Sarkar, Advocate
For Respondent: Shri Mingma Sherpa, Sr. DR
Hearing: 02.06.2026Pronounced: 08.06.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

This is an appeal filed by the revenue against the order passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)] dated

2 Agrani Ghosh 21.01.2026, DIN & order No. ITBA/NFAC/S/250/2025- 26/1085023111(1) challenging the order taking various grounds.

2.

Briefly stated the facts of the case are that as per the information available with the income tax department on AIMS module of ITBA in res

The order continues below.

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