NANDAN LIVE STOCK DEVELOPMENT CO-OPERATIVE SOCIETY LTD.,BURDWAN vs. A.C.I.T., CIRCLE - 1,, DURGAPUR

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ITA 2057/KOL/2024Status: DisposedITAT Kolkata06 May 2025AY 2017-2018Bench: Shri Duvvuru RL Reddy (Vice President)5 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(Appeals) order and remitted the matter back to the Assessing Officer to examine the documents afresh and provide the assessee with another opportunity to be heard, citing principles of natural justice.

What were the facts?

The assessee, a cooperative society engaged in poultry farming, claimed exemption under section 80P and declared 'NIL' income. The Assessing Officer added Rs. 15,27,000/- as unexplained cash credit during demonetization under section 68, which was upheld by the CIT(Appeals).

What were the issues?

Whether the assessee was provided with sufficient opportunity to substantiate its claim regarding cash deposits during demonetization, and whether the addition under section 68 was justified without proper examination of evidence.

Which sections of the Income-tax Act were involved?

Section 80P,Section 68,Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA

Before: Shri Duvvuru RL Reddy, Vice-(KZ)

Assessment Year: 2017-2018 Nandan Live Stock Development Cooperative Society Limited,………………………….……..……Appellant C/o. Jain Vinod K & Associates, 41A, A.J.C. Bose Road, Diamond Prestige Nirman, 6th Floor, Suite No. 613, Kolkata-700017 [PAN:AAAAN5417B] -Vs.- Assistant Commissioner of Income Tax,...Respondent Circle-1, Durgapur, Aayakar Bhawan, City Centre, Durgapur-734101, West Bengal Appearances by: Shri Vinod Jain, A.R., appeared on behalf of the assessee Ms. Madhumita Das, Addl. CIT, appeared on behalf of the Revenue Date of concluding the hearing: February 24, 2025 Date of pronouncing the order: May 06, 2025 O R D E R

The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 6th August, 2024 passed for Assessment Year 2017-18.

(A.Y. 2017-2018) Nandan Live Stock Development Cooperative Society Limited 2. Brief facts of the case are that the assessee-Society is engaged in the business of Poultry Firming on cooperative basis. The assessee filed its return of income electronically on 11.12.2019 for the assessment year 2017-18 after claiming of exemption under section 80P(2)(19) of the Income Tax Act, 1961 declaring total income at ‘NIL’ The case was selected for scrutiny under CASS. Accordingly, notice under section 143(2) of the Act was issued to the assessee by the ld. Assessing Officer on 21.09.2018 fixing the date of hearing on 28.09.2018. Thereafter notice under section 142(1) along with questionnaire was issued on 24.05.2019, which was duly served upon the assessee. Thereafter the case was re- fixed for submitting requisite information/documents on 21.08.2019, 11.11.2019 and 25.11.2019. In response, the assessee submitted its reply through e-filing portal in ITBA. On 25.06.2019 and 28.11.2019, the assessee uploaded copy of balance-sheet, profit & loss account, supporting documents related for party-wise cash received during demonetization period. Not being satisfied, the ld. Assessing Officer issued a show-cause notice dated 10.12.2019 asking the assessee why the cash deposit during demonetization period of demonetized currency of Rs.15,27,000/- should not be added back to the total income on account of unexplained cash credit under section 68 of the Income Tax Act. Not getting satisfactory reply from the assessee, the ld. Assessing Officer passed the assessment order assessing the total income at Rs.15,27,000/-.

(A.Y. 2017-2018) Nandan Live Stock Development Cooperative Society Limited 3. On being aggrieved, the assessee preferred an appeal before the ld. CT(Appeals). The ld. CIT(Appeals) uphold the order passed by the ld. Assessing Officer.

4.

The ld. Counsel for the assessee at the time of hearing argued that the revenue authorities have not given sufficient opportunity to the assessee to substantiate its claim. Therefore, he pleaded to set aside the order passed by the ld. CIT(Appeals) and remit the issue back to the file of ld. Assessing Officer to examine the issues afresh.

5.

On the other hand, ld. Departmental Representative submitted that sufficient opportunity was being provided to the assessee to substantiate its claim but the assessee failed to produce the supporting evidences towards cash deposited in the Bank during demonetization period and the source thereof. Therefore, the ld. CIT(Appeals) has no other option except dismissing the appeal and he pleaded to uphold the order passed by the ld. CIT(Appeals).

6.

I have heard both the sides and perused the material available on record. It was the submission of the assessee that the revenue authorities have not given sufficient opportunity to the assessee to substantiate its claim. The ld. Counsel for the assessee further submitted that the assessee filed all the relevant documents by way of paper book especially pages no.119 to 143. Therefore, he pleaded before me that one more opportunity to be given before the ld. Assessing Officer to examine the documents (A.Y. 2017-2018) Nandan Live Stock Development Cooperative Society Limited and dispose of the case afresh. The ld. D.R. has not raised any objection if the matter is remitted back to the file of ld. Assessing Officer to examine it afresh.

7.

Considering the facts and circumstances of the case, I am inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. Assessing Officer to examine the documents afresh, which were filed by way of paper book especially from pages no. 119 to 143 with a direction to provide one more opportunity of being heard to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. Assessing Officer failing which the Ld. Assessing Officer shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes.

8.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 06/05/2025.

Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 6th day of May, 2025 Copies to :(1) Nandan Live Stock Development Cooperative Society Limited, C/o. Jain Vinod K & Associates, 4 (A.Y. 2017-2018) Nandan Live Stock Development Cooperative Society Limited 41A, A.J.C. Bose Road, Diamond Prestige Nirman, 6th Floor, Suite No. 613, Kolkata-700017 (2) Assistant Commissioner of Income Tax, Circle-1, Durgapur, Aayakar Bhawan, City Centre, Durgapur-734101, West Bengal

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