DHARAMPUR ANCHAL SKUS LTD.,MALDA vs. I.T.O., WARD-3(1), MALDA, MALDA

The present appeal is directed at the instance of the assessee against the order of the National Faceless Appeal Centre (hereinafter the “ld. CIT(A)”) dt. 25/07/2022, passed u/s 250 of the Income Tax Act, 1961 (“the Act’), for Assessment Year 2017-18.

There is a delay of 13 days in filing of this appeal by the assessee. The assessee has filed a condonation petition. On perusal of the same, I am convinced that the assessee was prevented by sufficient cause from filing of the appeal in time. Hence, I condone the delay and admit this appeal of the assessee.

At the outset, the ld. Counsel for the assessee requested that the assessee failed to appear on the given dates of hearing and since the assessee is a Primary Agricultural Credit Society and the alleged addition of unexplained money is on account of money received from the Members, an opportunity may be granted for placing relevant materials and evidences before the ld. CIT(A) so that the issues may be adjudicated on merits. Assessment Year: 2017-18 Dharampur Anchal SKUS Ltd. 2 3.1. Per contra the ld. D/R supported the order of the ld. CIT(A) but was fair enough to not oppose this request of the assessee for being granted an opportunity to appear before the ld. CIT(A).

I have heard the rival contentions and perused the record placed before us.

The assessee is said to be a Primary Agricultural Credit Society (PACS). The return of income was not filed. The ld. Assessing Officer based on the information that cash has been deposited during demonetisation period at Rs.31,49,000/-, showcaused the assessee to explain the said sum. The assessee failed to appear. However, written submissions were filed claiming that the assessee is eligible for deduction u/s 80P of the Act. However, the ld. Assessing Officer was not satisfied and he observed that as per the theory of human probability no prudent person will hold such specific bank notes in hand in large number in his possession and deposit the same only after announcement of demonetisation scheme and accordingly made addition u/s 69 of the Act at Rs.39,41,000/-. The addition was also made on account of deemed interest income on the deposits held by the assessee at Rs.5,62,560/-. Income assessed u/s 144 of the Act at Rs.37,11,560/-. The assessee carried the matter in appeal before the ld. CIT(A). On various dates of hearing, the assessee failed to appear before the ld. CIT(A) and the ld. CIT(A) based on the statement of facts filed by the assessee adjudicated the issues and confirmed the order of the ld. Assessing Officer.

Before me, the ld. Counsel for the assessee has prayed that since relevant material and evidence showing source of money received by the assessee society from its Members and same being utilized for deposits in the bank account were not placed before the ld. CIT(A) due to unavoidable reasons, one more opportunity may be granted. The ld. D/R raised no objection. I, therefore, in the interest of justice, being fair to both the parties and also considering the fact that the assessee is a Primary Agricultural Credit Society, restore all the issues raised on merits of the case to the ld. CIT(A) with a direction to the assessee to file all Assessment Year: 2017-18 Dharampur Anchal SKUS Ltd. 3 necessary evidences on the earliest date of hearing. Needless to mention that the assessee should be provided a reasonable and proper opportunity of being heard and to place relevant material on record in support of the grounds raised