DUGDH UTPADAK SAHAKARI SANGH LTD.,RAEBARELI vs. ITO-, RAEBARELI
Income Tax Appellate Tribunal, LUCKNOW ‘A’ BENCH, LUCKNOW
Before: SH. SUDHANSHU SRIVASTAVA
PER NIKHIL CHOUDHARY, A.M.: [ This is an appeal filed by the assessee against the orders of the ld. CIT NFAC, dated 26.3.2024 dated 29.12.2023 wherein the ld. CIT(A) has dismissed the appeal of the assessee against the order passed by the ld. Assessing Officer under section 144 of the Income Tax Act on 19.12.2019. The grounds of appeal are as under:- “1. Because on the facts and in the circumstances of the case the order of Ld. CIT(A) is bad in law and deserves to be quashed being illegal.
Because on the facts and the circumstances of the case, the learned CIT(A) has erred in law and in facts in confirming assessment order against the non-existent entity even when the merger of the same was duly Communicated to the Assessing Officer vide various letters.
Because on the facts and the circumstances of the case, the learned CIT(A) has erred in law and in facts in confirming net profit of 8% of total credit in bank accounts held in the name of Baroda UP Gramin Bank Rae Bareli, even when such deposits were duly disclosed in the assessment of Lucknow Producers Cooperative Milk Union Limited (being merged entity) and no addition have been made and Return Income have been accepted by the learned Assessing Officer for Lucknow Producers Cooperative Milk Union Limited."
Because, on the facts and in the circumstances of the case, the CIT (A) has passed the order without providing the assessee with a due and proper opportunity of Dugdh Utpadak Sahakari Sangh Ltd.
A.Y. 2017-18
hearing and production of documents therefore the impugned order deserves to be set-aside being bad in law.
The appellant craves for leave to add, modify, amend or delete any other and further grounds of appeal with permission.”
The facts of the case are that the case of the assessee was selected for scrutiny in terms of the guidelines of the CBDT in Operation Clean Money. The ld. AO noted that the assessee had not filed a return therefore, a notice under section 142(1) was issued. Since, no compliance was made, a show cause notice under section 144 of the Income Tax Act was issued to the assessee by the then ld. AO. Subsequently, the file was transferred to the ITO-1, Raibareli, who issued another notice under section 142(1), followed by a notice under section 144. It was only after a final show cause notice under section 144 was issued on 14.11.2019 that the assessee filed a reply on 16.11.2019 indicating that it was registered Cooperative Society dealing in milk and milk products and its sales were through different milk agents throughout Raibareli. Its agents deposited the entire amount of sale in cash, at the cash section of the dairy and the same cash was subsequently deposited into the bank accounts. The entries with regard to the same were recorded in the accounts section. Furthermore, it was informed that the unit had since been merged with the Lucknow Producers Cooperative Milk Union Limited in February, 2016 hence the ITR and computation had been filed by the head office and the assessee only remained as a branch. The ld. AO noted that no registration certificate of the society with the