VYAVASAYA SEVA SAHAKARA BANK NIYAMITHA ANTHARAGATTE,CHICKMAGALUR vs. INCOME TAX OFFICER, WARD-1, CHICKMAGALUR, CHIKAMANGALUR

The assessee is a co-operative society and filed their return of income on 26/04/2022. The case was reopened u/s. 148 for the reason that there was cash deposits in bank account. The assessee had not filed any reply to the various notices issued u/s. 148A(b), 142(1) and show cause notice u/s.

Therefore based on the records available with the AO, the best judgement assessment u/s. 144 was made in which the cash deposits made to the bank account was treated as unexplained money u/s. 69A of the Act. As against the said order, the assessee filed an appeal before the Ld.CIT(A) with a delay of 259 days. The assessee also filed an application to condone the said delay. The Ld.CIT(A) had rejected the appeal on the ground that the appeal was filed with a delay of 4 years and 6 months which was not properly explained.

As against the said order, the present appeal has been filed before this Tribunal.

At the time of hearing, the Ld.AR brought to our notice that the assessment order was dated 03/03/2023 and the appeal was filed on 17/11/2023 and therefore there was a delay of 259 days. By mistakenly the Ld.CIT(A) had observed that there was a delay of 4 years and 6 months and on that basis, the Ld.CIT(A) had dismissed the appeal which is not correct. The Ld.AR further submitted that the cash deposits are nothing but the loan repayments made by the members to the assessee which was subsequently deposited into its bank accounts and therefore the deposits are having proper sources. The Ld.AR further submitted that since the assessee is a co-operative society rendering service through their staffs who are all not well versed with the computers and therefore the assessee was not able to respond to the various notices as well as was not able to file the appeal in time and prayed to grant an opportunity to appear before the AO.