PRAMOD KUMAR JAIN,JHANSI vs. INCOME TAX OFFICER, JHANSI

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ITA 569/AGR/2025Status: DisposedITAT Agra24 April 2026AY 2018-20195 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the concept of merger did not apply as the original assessment was modified by the PCIT. The assessee's grounds were not specific enough to grant relief.

What were the facts?

The assessee appealed an order where cash deposits were treated as undisclosed business turnover. Subsequently, the PCIT revised the order under Section 263, and the AO passed a fresh order treating the cash deposits as unexplained money under Section 69A.

What were the issues?

Whether the principle of merger applies when an assessment order is revised under Section 263. Whether the grounds of appeal raised by the assessee were sufficient for relief.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA BENCH (SMC

Before: SHRI S. RIFAUR RAHMAN

For Respondent: DR (Physical hearing)
Hearing: 20.04.2026Pronounced: 24.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH (SMC), AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No. 569/Agr/2025 Assessment Year: 2018-19 Shri Pramod Kumar Jain Vs. Income Tax Officer 44/2 Opp. Tehsil Jhansi, Aayakar Bhawan, Jhansi (U.P.) 284001. Jhansi. PAN : ABUPJ9338H (Appellant) (Respondent) Assessee by Sh. Sanjeev Agarwal, C.A. Department by Sh. Arun Kumar Yadav, CIT-DR (Physical hearing) Date of hearing 20.04.2026 Date of pronouncement 24.04.2026 ORDER PER : S. RIFAUR RAHMAN, ACCOUNTANT MEMBER: The assessee has filed this appeal against the order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 29.11.2025 for the Assessment Year 2018-2019, wherein the assessee has raised following grounds:-

“1. That the Ld. CIT(A) failed to appreciate that once the order of the Assessing Officer stood revised under sec. 263, the original assessment order ceased to exist to the extent revised, and any appeal arising therefrom ought to have been considered in the light of the revised order, in accordance with the settled principle of merger as laid down by judicial precedents. 2. The learned CIT (A) has erroneously upheld an addition of Rs. 7,20,726/- (Rupees Seven lacs twenty thousand seven hundred and twenty six only) on account of the undisclosed income from cash deposits.

ITA No.569/Agr/2025

3.

The Appellant craves liberty to add, amend, alter vary and withdraw of any ground of appeal as the circumstances of the case may require at the time of hearing.”

2.

At the time of hearing, ld. AR of the assessee brought to our notice, findings of the Assessing Officer in the original assessment order and brought to our notice subsequent developments for the assessment year 2018-19 as under:- Date Particulars of event 21.04.2021 Order u/s 143(3) passed treating the difference in cash deposit as undisclosed business turnover and estimating a net profit at the rate of 0.89% & disallowing certain business expenses 20.04.2023 Appeal filed with CIT(A) along with an application for condonation of delay 04.10.2023 Notice u/s 263 is issued to the appellant 12.10.2023 Reply to notice u/s 263 uploaded to the portal 20.03.2024 Order passed by the Ld. PCIT-1, Agra 12.03.2024 Order passed u/s 143(3) r.w. sec. 263 by treating the cash deposits as unexplained money u/s 69A 17.04.2025 Writ against above order dismissed with direction to seek alternate remedy 13.06.2025 Appeal against order passed u/s 143(3) r.w. sec. 263 by treating the cash deposits as unexplained money u/s 69A filed with CIT(A) 29.11.2025 Appeal filed on 20.04.2023 against original assessment order dismissed after condonation of delay. 15.12.2025 Appeal filed before your honours seeking merger.

3.

The Ld. AR of the assessee prayed that the appeal filed by the assessee may be allowed.

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4.

On the other hand, Ld. DR objected to the above submissions of the assessee and relied on the findings of the Ld. PCIT and Ld. CIT(Appeals). 5. Considered the rival submissions and the material placed on record. We observed that original assessment order u/s 143(3) of the Act was passed treating the difference in cash deposit as undisclosed business turnover and the Assessing Officer as estimated a net profit at the rate of 0.89% and disallowed certain business expenses. 6. Aggrieved with the above order, the assessee preferred an appeal before Learned CIT(Appeals) on 20.04.2023 along with condonation of delay. Subsequently, Learned PCIT issued notice u/s 263 of the Act on 04.10.2023, in response, the assessee filed the relevant information on 12.10.2025. Subsequently, Learned PCIT-1, Agra passed revision order u/s 263 of the Act on 20.03.2024. Subsequently, the Assessing Officer passed order giving effect u/s 263 on 12.03.2025 treating the below cash deposit as unexplained money u/s 69A of the Act. The assessee also filed an appeal against above said order u/s 143(3) r.w.s. 263 of the Act before Learned CIT(Appeals) on 13.06.2025. Subsequently, Learned CIT(Appeals) passed the appellate order on 29.11.2025 dismissing the appeal filed by the assessee against original assessment order after condonation of delay. I observed that the assessee has made 3 | P a g e

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submission on non maintainability of order passed u/s 263. However, the assessee has not taken any specific ground in the above issue. The Assessee had taken only the ground on concept of merger. I observed that the ld. CIT(Appeals) has dismissed the appeal preferred by the assessee against the order passed u/s 143(3) r.w.s. 263 of the Act as well as the appeal against original assessment order. The concept of merger has no play. The original assessment was already partly set aside or partly modified by the Ld. PCIT. The assessee has to take proper ground and as per the ground raised before us, the assessee will not get any benefit/ relief. Therefore, I am inclined to dismiss the present appeal. At the same time, the assessee is given liberty to file the appeal with proper ground on the factual matrix available on record as per law. Therefore, the present appeal is dismissed as discussed above. 7. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 24 .04.2026. Sd/- (S. RIFAUR RAHMAN) ACCOUNTANT MEMBER Dated: 24.04.2026 *Santosh, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra

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