SHREE UMRALI JUTH SEVA SAHKARI MANDALI,UMRALI vs. INCOME TAX OFFICER, WARD 1(2)(1), RAJKOT

PDF · subscribers
ITA 683/RJT/2025Status: DisposedITAT Rajkot17 August 2026AY 2019-205 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, considering the principles of natural justice, decided to give the assessee one final opportunity to present its case. The matter was restored to the CIT(A) for fresh adjudication.

What were the facts?

The assessee, a cooperative society, deposited a large sum of cash into its bank account and failed to file its return of income on time. The Assessing Officer treated the cash deposits as unexplained money and made additions to the assessee's income.

What were the issues?

Whether the cash deposits in the bank account were adequately explained by the assessee and whether the assessee was entitled to a further opportunity to present its case after non-compliance with lower appellate proceedings.

Which sections of the Income-tax Act were involved?

Section 147,Section 139(1),Section 148,Section 69A,Section 115BBE,Section 144B,Section 80P

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Bakul Ganatra, Ld. AR
For Respondent: Shri Ravinder Sindhu, Ld. CIT(DR)
Hearing: 17/08/2026Pronounced: 17/08/2026

यकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member

आयकर अपील सं./ITA No. 671 & 683/RJT/2025 [ �नधा�रण वष�/Assessment Year: 2018-19 & 2019-20 ] Shree Umrali Juth Seva Sahkari Income Tax Officer, Ward 1(2)(1), Mandali Ltd New Aaykar Bhavan Vatika, Race Vs. Umrali Rajkot, Course Ring Road, Rajkot-360001, Rajkot-360025, Gujarat Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAKTS6726R (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri Bakul Ganatra, Ld. AR Respondent by : Shri Ravinder Sindhu, Ld. CIT(DR) Date of Hearing : 17/08/2026 Date of Pronouncement : 17/08/2026

:: ORDER :: Per, Shri Sonjoy Sarma, JM: These appeals arise out of the respective orders dated 22.07.2025, passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’] which, in turn, arise from the assessment orders passed by the Assessing Officer under section 147 of the Income-tax Act, 1961, both orders are dated 22.03.2024 for the relevant assessment years. Since the appeals pertain to the same assessee and involve identical issues, they were heard together and are being disposed of by this common order.

2.

At the outset, it is noted that there is a delay of 18 days in filing the both the appeals in ITA No. 671/Rjt/2025 and ITA No. 683/Rjt/2025. The assessee has filed

ITA No. 671 & 683/RJT/2025 Shree Umrali Juth Seva Sahkari Mandali Ltd. two separate application seeking condonation of the said delay. Considering the reasons stated in the application and having regard to the overall facts and circumstances of the case, we find the explanation to be reasonable. Accordingly, the delay of 18 days is hereby condoned and the appeal is admitted for adjudication on merits.

3.

First we take up ITA No. 671/Rjt/2025 for AY 2018-19 as a lead case

4.

Brief facts of the case are that as per the information available with the Department through the Non-filer Monitoring System (NMS), the assessee had deposited cash aggregating to Rs.4,84,81,326/- in its current account maintained with Shri Rajkot District Co-operative Bank Ltd. during the Financial Year 2017-18 relevant to Assessment Year 2018-19. The assessee had also made cash withdrawals of Rs.5,99,251/- and time deposits of Rs.12,15,000/- during the relevant financial year. However, the assessee had not filed its return of income under section 139(1) of the Income-tax Act, 1961. On the basis of the aforesaid information, the assessment proceedings were reopened and notice under section 148 of the Act was issued after recording the reasons for reopening and obtaining the requisite approval from the competent authority. In response to the notice issued under section 148 of the Act, the assessee filed its return of income declaring Nil income. During the course of reassessment proceedings, the assessee furnished replies in response to the notices issued by the Assessing Officer. On examination of the submissions, the Assessing Officer noticed that the assessee is a co-operative society registered under the Gujarat Co-operative Societies Act, bearing Registration No. 1291 dated 16.05.1955. The assessee claimed to be a Seva Sahakari Mandali, functioning for the welfare of agriculturist members by providing fertilizers, extending loans to its members and providing other financial facilities. It was accordingly claimed that the income arising from such activities was eligible for deduction under section 80P of

Page 2 of 5

ITA No. 671 & 683/RJT/2025 Shree Umrali Juth Seva Sahkari Mandali Ltd. the Act. The assessee furnished a list containing the names of 637 persons along with the amounts entered against their respective names. However, according to the Assessing Officer, the said list did not contain PAN, addresses, signatures or the seal of the concerned persons/society and, therefore, the authenticity of the alleged recovery of loans from farmers could not be established. The assessee also furnished a letter from the bank in support of the agricultural activities allegedly carried out by the society. The Assessing Officer, however, observed that the said letter neither bore the requisite seal nor was it addressed to any specific person and, therefore, did not accept the same as reliable evidence. The assessee further furnished its bank statements and annual report. However, according to the Assessing Officer, the assessee failed to furnish important documents such as the registration certificate, memorandum of association, bye-laws, audited annual report and other relevant details necessary to establish the nature of its activities and the sources of the cash deposited in the bank account. The Assessing Officer observed that the mere assertion that the cash deposits represented receipts from sale of fertilizers and recovery of loans from members was not sufficient to establish the source of the deposits. The Assessing Officer further observed that the assessee had not filed its return of income within the time prescribed under section 139(1) of the Act and had filed the return only in response to notice under section 148 of the Act. According to the Assessing Officer, the assessee failed to furnish adequate documentary evidence in support of its claim that the cash deposits represented genuine business receipts or loan recoveries from its members. The assessee also failed to furnish a satisfactory explanation in response to the show-cause notice proposing addition of the cash deposits, cash withdrawals and time deposits as unexplained money. In the absence of satisfactory documentary evidence explaining the source of the amounts, the Assessing Officer treated the cash deposits of Rs.4,84,81,326/-, cash withdrawals of Rs.5,99,251/- and time deposits of Rs.12,15,000/- as unexplained money under

Page 3 of 5

ITA No. 671 & 683/RJT/2025 Shree Umrali Juth Seva Sahkari Mandali Ltd. section 69A of the Act and subjected the same to tax under section 115BBE of the Act. Accordingly, an aggregate addition of Rs.5,02,95,577/- was made to the total income of the assessee. Consequently, the Assessing Officer completed the assessment under section 147 read with section 144B of the Income-tax Act, 1961, vide order dated 22.03.2024, determining the total assessed income at Rs.5,02,95,577/-.

5.

Aggrieved by the said assessment order, the assessee preferred an appeal before the Ld. CIT(A). During the appellate proceedings, the assessee was afforded opportunities of being heard and furnished various submissions, documents and evidences in support of its contentions. But, the assessee did not comply with the various notices issued during the appellate proceedings. Consequently, the Ld.CIT(A), in the absence of compliance, dismissed the appeal and sustained the additions made by the Assessing Officer.

6.

Still, aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal. During the course of hearing, the Ld. AR submitted that, although there had been non-compliance before the Ld. CIT(A), the assessee may be granted one further opportunity to substantiate its claim and furnish the necessary documentary evidence. The Ld. DR, on the other hand, supported the order of the lower authorities.

7.

We have carefully considered the rival submissions and perused the material available on record. It is an undisputed position that the Ld. CIT(A) disposed of the appeal ex parte on account of non-compliance by the assessee. However, considering the principles of natural justice and fair play, we are of the considered view that the assessee deserves one final opportunity to present its case on merits.

Page 4 of 5

ITA No. 671 & 683/RJT/2025 Shree Umrali Juth Seva Sahkari Mandali Ltd. 08. Accordingly, in the interest of justice, we deem it appropriate to restore the matter to the file of the Ld. CIT(A) with a direction to examine the issues afresh after affording adequate and reasonable opportunity of being heard to the assessee. The assessee is directed to fully cooperate with the appellate proceedings and furnish all necessary documents and evidences in support of its claims.

9.

We further note that the issues involved in ITA No. 683/Rjt/2025 are identical to those considered in ITA No. 671/Rjt/2025. Therefore, following our decision in ITA No. 671/Rjt/2025, the issues in ITA No. 683/Rjt/2025 are also restored to the file of the Ld. CIT(A) for fresh adjudication in accordance with law.

10.

In the result, ITA No. 671/Rjt/2025 is allowed for statistical purposes and ITA No. 683/Rjt/2025 is also allowed for statistical purposes.

Order pronounced in the open court on this 17th day of August, 2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 17/08/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File By order //True Copy// Sr. Private Secretary ITAT, Rajkot

Page 5 of 5

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →