THE ANNDPURA JALBERA PRIMARY AGRICULTURE COOPERATIVE SOCIETY LTD.,AMBALA vs. INCOME TAX OFFICER, WARD-5,, AMBALA

On the facts and circumstances of the case the Ld.CIT(Appeals) NFAC has erred in having confirmed the order the Ld.AO which is illegal, without juri iction, and void abinitio as no statutory notice u/s 143(2) was issued in the present case.

On the facts and circumstances of the case the Ld.CIT(Appeals)NFAC has erred in having confirmed the action of AO in framing the assessment under the old PAN which was already surrendered by the assessee.

On the facts and circumstances of the case the Ld. CIT(Appeals) NFAC has erred in having not considered the return of income filed by the assessee under the new PAN allotted to the assessee society and grossly erred in ignoring the additional evidence filed vide assessee's application dated 06.03.2024. 5. On the facts and circumstances of the case the Ld. CIT(Appeals) NFAC has erred in having sustained an addition of Rs.6,19,500/- made by the Ld.AO u/s 68 of the Income Tax Act treating the same as unexplained cash credits, on account of accepting SBNs by assessee society during demonetization period and depositing the same in its bank account although admittedly the cash received and deposited was duly recorded in the books of accounts maintained in regular course of business.

On the facts and circumstances of the case the Ld.CIT(Appeals) NFAC has erred in having not considered the case laws on point at issue, relied upon by the assessee which are on identical facts and are fully applicable to the facts of present case.”

Briefly the facts of the case are that the assessment in this case was completed under section 147 r.w.s. 144 of the Act vide order dt. 24/12/2019 wherein the AO brought the tax a sum of Rs. 6,19,500/- under section 68 of the Act. The assessee thereafter carried the matter in appeal before the Ld. CIT(A) who has since sustained the said addition and against the findings of the Ld. CIT(A), the assessee is in appeal before us. 4. During the course of hearing, the Ld AR submitted that the AO allegedly found that assessee society accepted an aggregate amount of Rs. 17,30,000/- in Specified Bank Notes during the demonetization period which was deposited in its account in Ambala Central Cooperative Bank Ltd. The assessee society explained that source of cash deposit in bank accounts, was the amount collected from the members in their saving accounts with the assessee society as well as the recovery of loans given to the members during the regular course of business. It was further explained vide assessee's reply dated 06.12.2019 that the assessee society deposited cash amounting to Rs. 10,14,845/- during demonetization period out of which SBNs were to the tune of Rs.6,19,500/- and non-SBNs were to tune of Rs.9,95,345/-. It was explained that the assessee society was having closing cash in hand as on 8.11.2016 at Rs.5,76,184/- including SBNs of Rs.5,71,500/-. Out of this closing balance of cash as on 08/11/2016, SBNs of Rs.5,71,500/- were deposited in accounts with Cooperative Bank on 10.11.2016. It was further submitted that SBNs of Rs.48,000/- were received on 15.11.2016 from one member namely Shri Ranjit Singh, which were deposited on 17.11.2016 in PNB. It was submitted that copy of cash book from 08.11.2016 to 15.11.2016 was submitted during the assessment proceedings showing cash in hand on 08.11.2016 at Rs.5,76,185/- (which included SBNs at Rs.5,71,500/-) and showing further collection of Rs.50,500/-(which included Rs.48,000/- as SBNs) from Sh.Ranjit Singh on 15.11.2016. Further, complete details showing the SBNs of Rs.48,000/- collected from Shri Ranjit Singh were submitted during the assessment proceedings. It was submitted that the assessee also submitted cash deposit slips, Balance Sheet, Income & Expenditure account, Audit report duly verified by