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Facts
The appellant, a cooperative society, challenged an order confirming the assessment order for AY 2017-18. The addition of Rs. 5,57,000/- was made on account of deposit of old currency notes during demonetization, which the AO observed was not allowed and the assessee failed to provide evidence for the genuineness of the transaction.
Held
The Tribunal found that the confirmations from members were in the form of certificates and not affidavits, and that the CIT(A) did not call for a remand report. Considering the facts, the Tribunal deemed it fit to remand the matter back to the Assessing Officer for another opportunity to be heard.
Key Issues
Whether the deposit of old currency notes by the assessee society during the demonetization period, claimed as repayment of loans from members, is genuine and to be accepted without further evidence.
Sections Cited
250, 1961, 144, 68, 115BBE, 133
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”SMC” JAIPUR
Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 474/JPR/2025
ORDER PER: Narinder Kumar, Judicial Member Appellant a Sahkari Samiti-cooperative society, has filed present appeal challenging order dated 29.01.2025, passed by Learned CIT(A), U/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), relating the assessment year 2017-18, whereby assessment order dated 30.09.2019, has been confirmed, and the appeal stands dismissed.
Bishankhedi Gram Seva Sahkar Samiti Ltd. , Jhalawar 2. Arguments heard. File perused.
As is available from the assessment order, total income of the assessee, relating to the assessment year 2017-18 was computed by the Assessing Officer, as Rs. 5,84,843/-, u/s 144 of the Act. An addition of Rs. 5,57,000/- was made u/s 68 of the Act, while further directing that the same is chargeable to tax separately u/s 115BBE of the Act.
The assessee is a cooperative society registered under Rajasthan Cooperative Societies Act. The society is engaged in trading of fertilizer, seeds and pesticides. The assessee also provides credit facility to its members.
Case of the department is that a perusal of statement of bank account of the assessee, coupled with deposit slips and cash book entries revealed that the society deposited a sum of Rs. 5,57,000/-, “ in old currency notes of Rs. 1000 & 500”. Said amount was claimed to have been received by the society from its members after 08.11.2019 against sale of goods and advances. The Assessing Officer observed that receiving of money in old currency notes, during demonetization period, was not allowed. He also Bishankhedi Gram Seva Sahkar Samiti Ltd. , Jhalawar observed that the assessee failed to lead any evidence regarding genuineness of transactions of sale of goods and advances.
Since the assessee failed to explain the deposit of the said amount of Rs. 5,57,000/-in the form of old currency notes of Rs. 1000 and 500, and that too during demonetization period, the assessment order came to be passed. As noticed above, the assessment order was confirmed by Learned CIT(A).
Ld. AR for the appellant has submitted that the assessee-appellant submitted before Learned CIT(A) certain confirmations from its members in order to prove deposit of the above said amount towards the loan borrowed by each one of them from the society.
We have gone through copies of abovesaid confirmations stated to have been submitted by certain members of the appellant society before Learned CIT(A). Same are in the form of certificates and not in the form of affidavits. As claimed by the appellant society, the amount deposited by the members during demonetization period, was by way of repayment of loan installment, and that the society had no option but to receive the same.
Bishankhedi Gram Seva Sahkar Samiti Ltd. , Jhalawar In view of said claim and he confirmations, Learned CIT(A) could call for remand report from the Assessing Officer, regarding documents submitted in the appeal proceedings, but no such step appears to have been taken.
Having regard to all the facts and circumstances , we deem it a fit case to remand the matter to the Assessing Officer so that another opportunity is provided to the appellant society of being heard to establish its claim. Ld. DR for the department has also no objection to the remand of the matter to the Assessing Officer in the given peculiar facts and circumstances.