RAJMATA MULTI STATE CO OPERATIVE CREDIT SOCIETY LIMITED,OSMANABAD vs. ITO, WARD 1(1), SOLAPUR, SOLAPUR

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ITA 815/PUN/2026Status: DisposedITAT Pune28 July 2026AY 2016-175 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that both the Assessing Officer and the CIT(A) failed to consider the detailed submissions and documents provided by the assessee regarding its business as a Cooperative Credit Society and the sources of its cash deposits. Therefore, the matter was set aside for de novo adjudication.

What were the facts?

The assessee, a Cooperative Credit Society, did not file a return of income for AY 2016-17. The Assessing Officer initiated reassessment proceedings based on cash deposit information and made additions under Section 69A. The assessee contended that details of its business and sources of funds were not considered by the lower authorities.

What were the issues?

Whether the additions made under Section 69A were erroneous due to non-consideration of assessee's submissions and documents. Whether the reassessment proceedings were validly initiated and conducted.

Which sections of the Income-tax Act were involved?

Section 69A,Section 147,Section 144,Section 151,Section 148A,Section 148,Section 149(1)(b),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE

Before: DR. MANISH BORAD & SHRI PAVAN KUMAR GADALE

For Appellant: Shri Bhuvanesh Kankani
For Respondent: Smt. Shilpa NC
Hearing: 18.06.2026Pronounced: 28.07.2026

PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2016-17 is against the order dated 10.12.2025 framed by National Faceless Appeal Centre, Delhi passed u/s.250 of the Income Tax Act, 1961 arising out of Assessment order dated 23.01.2024 passed u/s.147 r.w.s.144 r.w.s.144B of the Act.

2.

Assessee has raised following grounds of appeal :

“1. On the facts and circumstances prevailing in the case and as per provisions and scheme of the Income-tax Act, 1961 ('the Act') it be held that the addition made by the Ld. AO u/s 69A is erroneous and not in accordance with the provisions of the Act. The additions so made be deleted and the Appellant be granted just and proper relief in this regard.

ITA No.815/PUN/2026 Rajmata Multi State Cooperative Credit Society Limited

2.

On the facts and circumstances prevailing in the case and as per provisions & scheme of the Act it be held that the approval granted u/s 151 of the Act is mechanical in nature. Accordingly, the assessment proceedings so initiated on the basis of such mechanical approval be kindly annulled and the Appellant be granted just and proper relief in this respect. 3. On the facts and circumstances prevailing in the case and as per provisions & scheme of the Act it be held that the proceedings u/s 148A of the Act are invalid since Ld. AO did not provide the required material along with notice u/s 148A(b) of the Act. Accordingly, the assessment proceedings so initiated on such invalid foundation be kindly annulled and the Appellant be granted just and proper relief in this respect. 4. On facts and circumstances prevailing in the case and as per provisions and scheme of the Act it be held that the notice u/s 148A and 148 of the Act were not served according to the provisions of the Act. Accordingly, the Assessment Proceedings so initiated be kindly annulled and Appellant be granted just and proper relief in this respect. 5. On the facts and circumstances prevailing in the case and as per provisions & scheme of the Act it be held that Ld. AO has erred in initiating the assessment proceedings since he has not satisfied the condition laid down u/s 149(1)(b) of the Act. Accordingly, the assessment proceedings so initiated and completed on such invalid foundation be kindly annulled and the Appellant be granted just and proper relief in this respect. 6. On the facts and circumstances prevailing in the case and as per provisions and scheme of the Act, it is humbly prayed that Appellant be kindly granted an opportunity to present its case before Ld. CIT(A), accordingly the matter be please restored with such just and proper directions. 7. On the facts and circumstances prevailing in the case and as per provisions and scheme of the Act, Appellant be kindly allowed to produce additional evidence, if required, in the interest of justice. 8. The appellant prays to be allowed to add, amend, modify, rectify, delete, raise any grounds of appeal at the time of hearing.”

2.1 At the outset, ld. Counsel for the assessee requested for not pressing Grounds of appeal No.2 to 5 raising legal issues and the same are dismissed as ‘not pressed’.

ITA No.815/PUN/2026 Rajmata Multi State Cooperative Credit Society Limited 3. So far as merits of the case are concerned, ld. Counsel for the assessee submitted that ld. Assessing Officer has not taken note of the submissions filed during the course of assessment proceedings that the assessee is a Cooperative Credit Society and maintaining all details for the amounts received from its Members and carrying out its activity of providing credit facilities to its Members. He submitted that various details filed before the lower authorities have not been considered and therefore in the interest of justice an opportunity may be provided by restoring the issues raised in the instant appeal to the file of ld. Jurisdictional Assessing Officer.

4.

Ld. Departmental Representative supported the order of ld.CIT(A).

5.

We have heard the rival submissions and perused the record placed before us. We note that the assessee is a Cooperative Credit Society and did not file the return of income for A.Y. 2016-17. Ld. Assessing Officer based on the information about cash deposits, carried out the reassessment proceedings u/s.147 of the Act. Ld. Assessing Officer has passed the Best Judgment assessment u/s.144 of the Act making the addition for total cash deposit of Rs.2,51,45,950/- even though the assessee is contending that it has filed the submissions on 27.12.2023. Thereafter, the assessee carried the matter before ld.CIT(A) but again on account of non- compliance before ld.CIT(A) assessee failed to get any relief.

6.

We have gone through the details furnished in the paper book running into 32 pages and note that assessee furnished the return in response to notice u/s.148 of the Act on

ITA No.815/PUN/2026 Rajmata Multi State Cooperative Credit Society Limited 06.04.2022. Assessee has also furnished the computation of income, profit and loss account, balance sheet, detailed note on the business activity stating that the assessee is a Multi State Cooperative Credit Society providing banking services to its Members, accepting deposits and providing loans to its Members. No deduction/exemption are claimed in the return of income and bank account statements have been enclosed. There were no investments made in the immovable and moveable property assets during the year, source of cash deposits is stated to be from its Members and from the genuine sources. Ld. CIT(A) has also not dealt with merits of the case and ld.Assessing Officer has not taken cognizance of the details filed during the course of assessment proceedings. We however taking note of the fact that both the lower authorities have not taken cognizance of these details and considering the contentions made by ld. Counsel for the assessee and in the larger interest of justice, we deem it appropriate to set aside the matter to the file of ld. Jurisdictional Assessing Officer for denovo adjudication. Needless to mention that ld.JAO shall provide due opportunity of hearing to the assessee and consider the documents to be filed by the assessee and then decide in accordance with law. Assessee is directed to update email and contact detail on the ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.JAO shall be free to proceed in accordance with law. Impugned order of ld. CIT(A)/NFAC is set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.

ITA No.815/PUN/2026 Rajmata Multi State Cooperative Credit Society Limited 7. In the result, the appeal of the assessee is partly allowed for statistical purposes.

Order pronounced on this 28th day of July, 2026. Sd/- Sd/- (PAVAN KUMAR GADALE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; दिन ांक / Dated : 28th July, 2026. Satish Satish Kumar Madishetty Digitally signed by Satish Kumar Madishetty Date: 2026.07.28 14:58:55 +05'30'

आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order forwarded to : अपील र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent. 2. 3. The Pr. CIT concerned. विभ गीय प्रतितनधि, आयकर अपीलीय अधिकरण, “B” बेंच, 4. पुणे / DR, ITAT, “B” Bench, Pune. ग र्ड फ़ इल / Guard File. 5. आिेश नुस र / BY ORDER,

// True Copy // Assistant Registrar, आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune.

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