ITAT Restores ₹7.73 Lakh Cash Deposit Addition to verify if Old Pan Deposits were Included in ITR Filed with New Pan [Read Order]
The Tribunal directed the AO to verify whether the bank account linked with the old PAN is considered by the assessee in the return of income filed with the new PAN.
Cash - Deposit - Taxscan
Cash - Deposit - Taxscan
The Agra Bench Income Tax Appellate Tribunal (ITAT) restored the appeal involving an unexplained cash deposit addition of Rs. 7,73,760/- to the Assessing Officer (AO) for fresh adjudication and directed to verify if the bank account transactions linked with the assessee's old PAN were already included in the Income Tax Return (ITR) filed with the new PAN.
Manju Agarwal (assessee), for the assessment the AO had observed huge cash deposits in the assessee's UCO bank account, including deposits made during the demonetization period. The AO treated a sum of Rs.7,73,760 as unexplained money and added it to the assessment.
Aggrieved by the AO’s order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) dismissed the assessee's appeal as unadmitted for non-deposit of advance tax, applying the provisions of section 249(4)(b) of the Act.
Aggrieved by the CIT(A)’s order, the assessee filed an appeal before the ITAT. The assessee’s counsel submitted that the assessee was issued two PANs, and the return of income was furnished with the new PAN.
The counsel submitted that one bank account was linked with the old PAN, and the transactions from this account were obtained by the AO under section 133(6) of the Act and subjected to the addition. The counsel asserted that the transactions in the said bank account had been duly considered by the assessee in the ITR filed with the new PAN.
The single-member bench, comprising M. Balaganesh (Accountant Member) , noted that it was not in dispute that the assessee had filed her return of income with the new PAN.
The Tribunal decided to restore the appeal to the AO for fresh adjudication considering the submission for factual verification by the AO. The Tribunal directed the AO to verify whether the bank account linked with the old PAN is considered by the assessee in the return of income filed with the new PAN.
The tribunal directed the assessee to cooperate with the AO and surrender the old PAN. The tribunal allowed the assessee to file fresh evidence in support of her contentions. In the result, the appeal of the assessee was allowed for statistical purposes.
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