This is usually done when a shunt is used as the shunt is supposed to sit in the live wire. No need to do so if you use a CT, AGND could be tied to neutral then.
Anyway, referencing the AGND to neutral isn't better in terms of safety, as one has to consider the neutral "live" in most cases, so you should isolate the circuit as if it was at live potential.
If you use CT and PT, I'd reference the circuit AGND to safety ground / earth.