IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.97/Lkw/2022 Assessment Year: 2017-18 M/s Guru Kripa Associates Vs. Pr. C.I.T., 200A, Mecnair Road, Bareilly.

Prem Nagar, Bareilly.

PAN:AAHFG0261G (Appellant) (Respondent)

Appellant by Shri P. K. Kapoor, C.A.

Respondent by Shri R. K. Agarwal, CIT (D.R.)

O R D E R

PER ANADEE NATH MISSHRA:A.M.

(A) This appeal has been filed by the assessee for assessment year 2017- 2018 against impugned order dated 24/03/2022 passed by learned Principal Commissioner of Income Tax (“Pr.CIT” for short) under section 263 of the Income Tax Act, 1961 (“the Act” for short). The grounds of appeal are as under:

“1. The order passed under section 263 of the Income-tax Act, 1961 [the Act), by Ld. Pr. Commissioner of Income Tax holding that the Assessment Order passed by the Ld. AO u/s.143(3)

dated 29.11.2019 of the Act is erroneous and prejudicial to the interest of the revenue is bad in law and ultra vires.

2. The Ld.Pr.CIT has erred in holding that Ld.AO has failed to make necessary enquiry and bring on record all facts without appreciating that specific query was raised in the assessment proceedings on issue under consideration of cash deposit and all relevant details in response thereof was filed.

3. The Ld. Pr.CIT has failed to appreciate that the assessment order was neither erroneous nor prejudicial to the interest of the revenue and thus order u/s 263 is bad in law and illegal.

4. The Ld. Pr. CIT has failed to appreciate the facts that source of cash deposit during demonetization along with supporting evidences was duly explained by the appellant.

5. On the facts and circumstances of the case, the learned CIT has erred, both on facts and in law, in set aside the order of the A.O., rejecting the explanation given by the assessee.”

(B) In this case, assessment order dated 29/11/2019 was passed by the Assessing Officer whereby the assessee’s total income was determined at Rs.11,96,420/- as against returned income of Rs.11,67,860/-. The aforesaid assessment order was put to revision by Principal Commissioner of Income Tax (“Pr.CIT” for short) u/s 263 of the Act. Vide impugned order dated 24/03/2022 passed u/s 263 of the Act, the learned Pr.CIT set aside the aforesaid assessment order and directed the Assessing Officer to frame de novo assessment order keeping in view the observations made in de novo assessment order. The relevant part of the order of the learned Pr.CIT is reproduced below:

(C) The present appeal has been filed by the assessee against the aforesaid impugned order dated 24/03/2022 passed u/s 263 of the Act by the learned Pr.CIT.

(D) During the appellate proceedings in Income Tax Appellate Tribunal, a paper book containing 40 pages was filed from the assessee’s side. Subsequently, vide letter dated 04/08/2025, the aforesaid paper book was withdrawn and a fresh paper book containing the following particulars was filed:

(D.1) Further written submissions were also filed from the assessee’s side, which are reproduced as under:

WRITTEN SUBMISSION ITA No. 97/LKW/2022 in the case of M/s Guru Kripa Associates

200A, Mecnair Road, Prem Nagar, Bareilly PAN: AAHFG0261G A.Y. 2017-18 Facts of the case:

1) The appellant is a partnership firm. The return of Income for A.Y. 2017-18 was filed by the appellant on 12/10/2017declaring total income of Rs. 11,67,860/-. A copy acknowledgement dated 12.10.2017 of Income Tax Return is available on paper bookpage number 94.Subsequently the casewas selected for scrutiny and notice u/s 143(2) of the I.T.Act,1961 was issued on09/08/2018 and 25/09/2018. The copy of notice issued u/s 143(2) dated 25/09/2018 is available on paperbook page number 95 to 98and notices u/s 142(1) dated 22.01.2019 and 15.10.2019 (available on paper book page number 100 – 101 and 184 – 189 repectively) were issued to the assessee raising queries aggregate 36 in numbers. In the notice issued u/s 142(1)