Loading judgment…
Facts
The assessee, a cooperative society, appealed against an order confirming an addition for unexplained cash deposits. The assessee had not filed a return for the assessment year but claimed eligibility for deduction under section 80P and sought an opportunity to explain the cash deposits.
Held
The Tribunal held that the CIT(A)'s observation invoking section 249(4)(b) was not in accordance with law, as the assessee was not liable to pay advance tax in the preceding year. The Tribunal set aside the impugned order and remitted the issues to the AO for a fresh adjudication.
Key Issues
Whether the CIT(A) was correct in dismissing the appeal for non-deposit of advance tax, and if the assessee is eligible for deduction under section 80P.
Sections Cited
250, 144, 69A, 249(4)(b), 80P, 147, 148, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2017-18 is directed against the order dated 21.02.2024 of National Faceless Appeal Centre (NFAC) Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated 30.12.2019 passed u/s. 144 of the Act.
This is a recalled matter. The earlier order of the Tribunal dated 02.05.2024 has been recalled vide M.A No. 78/PUN/2024, order dated 07.08.2025.
The sole grievance of the assessee in this appeal is against the finding of ld.CIT(A) confirming the addition for unexplained
At the outset, Ld. Counsel for the assessee submitted that the assessee is a Cooperative Society and has not filed the return of income for A.Y.2017-18. However the assessee possesses all necessary details to show that the assessee Cooperative Society is eligible for deduction u/s.80P of the Act and to explain the source of alleged cash deposit in the bank account held with Prathamik Sikhsak Sah. Bank, Kolhapur and Bank of India, Radhanagari. He thus prayed for an opportunity to before the ld. Jurisdictional Assessing Officer (JAO).
On the other hand, ld. Departmental Representative supported the orders of the lower authorities.
I have heard the rival contentions and perused the record placed before me. Against the addition for unexplained cash deposit u/s.69A at Rs.10,86,200/- made by the ld. Assessing Officer in the Best Judgment Assessment framed u/s.144 of the Act for A.Y. 2017-18, assessee preferred appeal before ld.CIT(A). However, ld.CIT(A) dismissed the appeal for statistical purposes observing that in view of section 249(4)(b) of the Act the assessee has not deposited the Advance Tax payable by it and therefore appeal cannot be admitted for adjudication.
I find that the assessee is a Cooperative Society and is claiming to be eligible for deduction u/s.80P of the Act. It is not the case that in the immediately preceding assessment year, assessee society had a tax liability based on which the Advance Tax was required to be deposited for A.Y. 2017-18. Therefore, the observation of ld.CIT(A) invoking 249(4)(b) of the Shri Ambai Gramin Bigarsheti Sah Pat Sanstha Maryadit Act is not in accordance with law and the order of ld.CIT(A) deserves to be set aside. However, the assessee failed to appear before the ld. JAO resulting into Best Judgment Assessment and the ld. Counsel for the assessee before me has furnished the paper book running into 55 pages including copy of cash book, bank statements, declaration of depositors and other relevant details to prove that the assessee has sufficient evidence to explain the source of alleged cash received from its Members and its eligibility to claim deduction u/s.80P of the Act.
Under these facts and circumstances, in the larger interest of justice and being fair to both the parties, I deem it appropriate to remit the issues raised in the instant appeal to the file of ld. JAO. Needless to mention that ld.JAO shall afford reasonable opportunity of hearing to the assessee in the set aside proceedings. Assessee is directed to update latest email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is hereby set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 15th day of September, 2025.