SADHIKA GANNI,RAJAHMUNDRY vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 2,, RAJAHMUNDRY

ITA 205/VIZ/2024Status: DisposedITAT Visakhapatnam29 May 2026AY 2017-1818 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the AO had failed to conduct proper inquiries regarding the source of cash deposits, making the assessment order erroneous. The PCIT was justified in exercising revisionary powers under Section 263 to direct verification of the cash deposits.

What were the facts?

The assessee made cash deposits of Rs. 1 crore in her bank account, claiming they were from marriage and anniversary gifts. The Assessing Officer (AO) accepted this explanation without proper verification. The Principal Commissioner of Income-Tax (PCIT) invoked Section 263, finding the AO's order erroneous and prejudicial to revenue.

What were the issues?

Whether the AO's assessment order was erroneous and prejudicial to the revenue due to lack of proper inquiry into the source of cash deposits. Whether the PCIT had valid jurisdiction to revise the assessment order under Section 263.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 143(2),Section 127,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Visakhapatnam Bench

For Appellant: Dr. Satyasai Rath, CIT-DR

प्रनत रवीश सूद, जे.एम./PER RAVISH SOOD, J.M.

The present appeal filed by the assessee is directed against the order passed by the Principal Commissioner of Income-Tax, Visakhapatnam – 1 (for short, “Pr. CIT”) under Section 263 of the Income Tax Act, 1961 (for short “the Act”), dated 28.02.2024, which in 2 Sadhika Ganni

turn arises from the order passed by the A.O. under Section 143(3) of th

The order continues below.

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