INCOME TAX OFFICER, DEHRADUN vs. JHAJRA SADHAN SAHKARI SAMITI LIMITED, DEHRADUN

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ITA 267/DDN/2026Status: DisposedITAT Dehradun28 July 20264 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The CIT(A) rightly deleted the addition, finding that the assessee had provided sufficient evidence to explain the cash deposits. The Tribunal affirmed the CIT(A)'s order, noting that the evidence was not new and did not violate Rule 46A.

What were the facts?

The Assessing Officer (AO) made an addition of Rs. 1,91,00,000/- on account of unexplained cash deposits made by the assessee, a Primary Agriculture Credit Co-operative Society. The assessee explained that these deposits were from small savings of members in saving and RD accounts.

What were the issues?

Whether the cash deposits made by the assessee were unexplained, and if the CIT(A) erred in admitting evidence at the appellate stage.

Which sections of the Income-tax Act were involved?

Section 69A,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN BENCH, DEHRADUN

Before: ShriMahavir Singh & Shri Sanjay Awasthi

Hearing: 20.07.2026Pronounced: 28.07.2026

Heard together (2 matters)

ITA No. 267/DDN/2026
CO No. 14/DDN/2026

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH, DEHRADUN Before ShriMahavir Singh, Vice President & Shri Sanjay Awasthi, Accountant Member ITA No. 267/DDN/2026 : Asstt. Year : 2016-17 Income Tax Officer, Vs Jhajra Sadhan Sahkari Samiti Aaykar Bhawan, 13A, Subhash Ltd., Jhajra,Sahaspur, Road, Dehradun-248001 Dehradun-248001 (APPELLANT) (RESPONDENT) PAN No. AAIFJ2940C CO No. 14/DDN/2026 : Asstt. Year : 2016-17 Jhajra Sadhan Sahkari Samiti Ltd., Vs Income Tax Officer, Jhajra, Sahaspur, Aaykar Bhawan, 13A, Dehradun-248001 Subhash Road, Dehradun- 248001 (APPELLANT) (RESPONDENT) PAN No. AAIFJ2940C Assessee by: Sh. Sanjeev Nagar, CA Revenue by: Sh. Mohan Lal Joshi, Sr. DR Date of Hearing: 20.07.2026 Date of Pronouncement: 28.07.2026 ORDER Per Bench: These two cross appeals, one by Revenue and one by assessee are arising out of the order of ld. CIT(A)/NFAC, Delhi in DIN & order No. ITBA/NFAC/S/250/2025-26/1087293062(1), order dated 12.03.2026. The assessment was framed by the AO of NFAC, Delhi for the Assessment Year 2016-17 u/s 147 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter “the Act”) vide his order dated 24.03.2022.

2 ITA No. 267& CO 14/DDN/2026 Jhajra Sadhan Sahkari Samiti Ltd. 2. The only issue in this appeal of Revenue is as regards to the order of ld. CIT(A) deleting the addition of Rs.1,91,00,000/- made by the Assessing Officer u/s 69A of the Act on account of unexplained cash deposits.

3.

Brief facts are that the assessee is a Primary Agriculture Credit Co-operative Society registered under the Uttaranchal Co-operative Society Act and is engaged in carrying out activities like borrowing, raising funds or taking up of money lending or advancing money for the purposes of agricultural work and the society is also financed by the District Co- operative Bank to provide credit facilities in its area to the members of society. During the course of assessment proceedings, the Assessing Officer noticed from the books of accounts that there is unexplained cash deposits of Rs.1,91,00,000/-. The Assessing Officer required the assessee to explain the source of cash deposits as the assessee did not file any explanation in this regard nor submitted any documentary evidence, he added the unexplained cash deposits of Rs.1,91,00,000/- as unexplained u/s 69A of the Act. The AO also invoked the provisions of section 115BBE of the Act.

4.

Aggrieved, the assessee preferred appeal before ld. CIT(A). The ld. CIT(A) after considering the submissions of the

3 ITA No. 267& CO 14/DDN/2026 Jhajra Sadhan Sahkari Samiti Ltd. assessee and reply extracted by the AO which is reproduced and for the sake of clarity, the same is reproduced hereunder: “Assessee was also running a Garmin Bachat Kendra where small savings of the members deposited in saving and RD account maintained with samittee and cash was deposited in Bank A/c of the assessee out of these sources. Details of month wise cash deposited in Bank A/c is being produced as below.” 5. The assessee has provided balance sheet, P&L account and audit report of the relevant year and also filed copy of cash book for the Financial Year 2015-16, copy of members savings bank account on sample basis and vouchers/deposits slip for the month of November 2015 to prove the source of deposits. Accordingly, the ld. CIT(A) noted that the assessee has duly explained the cash deposits, which are accounted for in the books of accounts of the assessee and hence there is no justification in holding the deposits as unexplained cash deposits u/s 69A of the Act.

6.

Aggrieved, the Revenue is in appeal before the Tribunal.

7.

We have heard the rival contentions and have gone through the facts and circumstances of the case. We note that the only grievance of the Revenue raised in its grounds is that the ld. CIT(A) has erred in accepting the evidences furnished by assessee at the appellate stage thereby failing the provisions of Rule 46A of the Income Tax Rules, 1962. We have noted that the assessee had filed voluminous details before the

4 ITA No. 267& CO 14/DDN/2026 Jhajra Sadhan Sahkari Samiti Ltd. ld. AO, as is evidenced by documents uploaded at ITBA portal (pages 69 to 89 of paper book), of which the screenshots have been filed. In short, the assessee provided cash book and some sample vouches to the ld. AO, who has called them as “other irrelevant points” and has, thereafter, added the impugned amount. We find that the ld. CIT(A) has utilized the same set of facts, albeit with a crisper presentation, to grant relief. In such circumstances, we do not find any evidence of so-called new evidence having been filed before the ld. CIT(A) and thus there is no question of violation of Rule 46A. Accordingly, we affirm the finding of ld. CIT(A) on the issue of addition of Rs.1,91,00,000/- u/s 69A of the Act.

8.

As regards to CO of the assessee, which is supportive of the order of the ld. CIT(A), it is dismissed as academic.

9.

In the result, the appeal Revenue as well as the CO of the assessee are dismissed. Order Pronounced in the Open Court on 28/07/2026. Sd/- Sd/- (Sanjay Awasthi) (Mahavir Singh) Accountant Member Vice President Dated: 28/07/2026 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

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