SHRI PANIYALA-BAMBHANIYA SEVA SAHKARI MANDALI,GHOGHA BHAVNAGAR vs. INCOME TAX OFFICER WARD-1(1), BHAVNAGAR

आदेश/O R D E R

Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (in short “NFAC”), Delhi [hereinafter referred to as ‘Ld. CIT(A)’] dated 09/06/2025 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2018-19.

ITA No.1758/Ahd/2026 Shri Paniyala-Bambhaniya Seva Sahkari Mandali vs. ITO Asst.Year 2018-19 2 3. The assesse has raised the following grounds of appeal:

“1. On the facts and in the circumstances of the case and in law, the action of the Ld. CIT(A) in sustaining the addition of cash deposit of Rs. 4,21,22,920/- by treating it as unexplained money u/s 69A is bad in law. The Ld. CIT(A) failed to appreciate the fact that the actual cash deposits of Rs. 1,05,30,730/- was wrongly considered 4 times as Rs. 4,21,22,920/- and the assessment order passed in erroneous to that extent. The Ld. CIT(A) failed to appreciate the fact that the cash deposits of Rs. 1,05,30,730/- were from genuine business transaction of the appellant. The Ld. CIT(A) failed to appreciate that the appellant received the cash from its farmer members as repayment of loan given to its farmer members alongwith interest. The appellant prays that once the source and genuineness of the cash deposits are explained, the addition u/s 69A cannot be made. 2. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal.” 4. At the outset, the Ld. Counsel for the assessee has submitted that the assessee is a primary cooperative agricultural society and it is in the business of providing agricultural loans to its members. That the assessee had deposited surplus funds in the cooperative bank, which were out of the collection made from its members. He has further submitted that the assessee society is consisting of farmers and the key persons were not very much conversant with the technicalities of the online income tax proceedings. The notices of hearing sent by the Assessing Officer (in short “the AO”) online, did not come to the notice of the assessee, therefore, the case of the assessee remained unrepresented before the AO. The AO, therefore, in an ex-parte/best judgment assessment order passed u/s 144 of the Act, made the addition of the entire deposits treating the same as income of the

ITA No.1758/Ahd/2026 Shri Paniyala-Bambhaniya Seva Sahkari Mandali vs. ITO Asst.Year 2018-19 3 assessee from the unexplained sources. The Ld. Counsel for the assessee has submitted that all the funds belong to the members. That the assessee can very well reconcile/prove the sources of the funds. The Ld. Counsel has further submitted that even certain entries have been repeatedly added and the actual funds deposited by the assessee were less than the amount added by the AO. The Ld. Counsel has made almost similar averments for non-representation before the CIT(A) stating that the assessee though had appointed a Tax Consultant to represent the case before the CIT(A), but somehow, the case of the assessee could not be represented. The Ld. Counsel for the assessee has submitted that it has a fair case on merits. He has submitted that in the interests of justice, the asessee may be given an opportunity to present it’s case before the AO so that the assessee may explain the sources of the deposits made in the bank.

ITA No.1758/Ahd/2026 Shri Paniyala-Bambhaniya Seva Sahkari Mandali vs. ITO Asst.Year 2018-19 4 aside. The matter is restored to the file of the AO for de-novo assessment. The assessee will furnish the proof of such deposit of costs before the AO.

Order pronounced in the Open Court on 29/07/2026.

Sd/- Sd/- (Narendra Prasad Sinha) (Sanjay Garg) Accountant Member Judicial Member

अहमदाबाद/Ahmedabad, िदनांक/Dated 29/07/2025 Tanmay, Sr. P.S. TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु� अपील ( ) / The CIT(A)-(NFAC) 5. िवभागीय �ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद /DR,ITAT, Ahmedabad. , , 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad