TYSPL 88 ILUPPAIYUR PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD ,ARIYALUR vs. COMMISSIONER OF INCOME TAX APPEAL, CHENNAI

The assessee is a primary agricultural cooperative credit society and has not filed its return of income for the relevant assessment year.

The A.O reopened the assessment for the reason that the assessee had made a cash deposit of Rs.2,38,88,559/- and has not filled the return. The A.O in assessment order passed u/s. 147 r.w.s 144B of the Act, has made the addition of Rs.2,38,88,559/- as the assessee has not furnished any details regarding the source of the cash deposits made into its bank account. On appeal, the Ld. CIT(A) dismissed the appeal on the ground that the assessee failed to file any documentary evidence to substantiate the nature and source of the said cash deposits.

Before us, the Ld. Authorized Representative (A.R) of the assessee has submitted that the assessee is a cooperative primary agriculture cooperative credit society and the main business of the society is to lend loan to its members. The Ld AR submitted that the cash deposits are the loan repayment by the members of the society through the cash made along with interest and principles. Further, the Ld. AR has submitted that the Ld. CIT(A) has issued only one notice and has decided the matter without providing proper opportunity and requested for one more opportunity to explain the source of cash deposits.

The Ld. Departmental Representative (DR), has relied on the orders of lower authorities.

We have heard the rival submissions, and perused the materials available on record. The assessee is a primary agricultural cooperative credit society and addition of cash deposit has been made by the A.O as assessee has not explained the source. The assessee has explained that these cash deposits are repayments of loan by members. The Ld. A.R has submitted that the Ld. CIT(A) has decided the matter without affording them proper opportunity to present their case. We find merit in the submission of Ld AR, therefore remit the matter back to the file of the A.O for fresh adjudication after providing a reasonable opportunity to the assessee to present its case. The assessee is also directed to appear before the A.O on the date of hearing without fail and furnish complete details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.

In the result, the appeal filed by the assessee is allowed for statistical purposes.