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Facts
The assessee, a rural housing co-operative society, deposited Rs.6,31,71,773/- in cash during the demonetization period (09.11.2016 to 31.12.2016). The Assessing Officer (AO) completed the assessment under Section 147 and made an addition under Section 68 for unexplained cash credits, as the assessee allegedly failed to furnish required details.
Held
The Income Tax Appellate Tribunal (ITAT) remanded the matter back to the Assessing Officer. The ITAT found that the AO made the addition without properly considering the documents submitted by the assessee and that the assessee did not get a proper opportunity. The AO is directed to re-examine the issue afresh after considering all details or documents to be submitted.
Key Issues
Whether the Assessing Officer was justified in making an addition under Section 68 without properly considering the assessee's documents and providing a proper opportunity to be heard.
Sections Cited
250, 148, 143(2), 147, 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao & Shri Sonjoy Sarma
Kottarakara Kollam, Kerala – 691506. PAN : AADAT7613G. (Appellant) (Respondent) Appellant by : Shri Koshy T Y, CA Respondent by : Smt. Leena Lal, Snr AR. Date of Hearing : 02.06.2025 Date of Pronouncement : 10.06.2025 O R D E R Per Sonjoy Sarma: The present appeal has been preferred by the assessee against an order dated 22.07.2024 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).
Brief facts of the case are that the assessee is a rural housing co-operative society under Kerala State Co-operative Department. The assessee filed its return of income for the assessment year 2017-18 in compliance to notice u/s 148 of the Act. Later on, notice u/s 143(2) of the Act was issued calling for bank statements from various banks as the assessee allegedly deposited cash during demonetization period from 09.11.2016 to 31.12.2016 of The Kottarakkara Taluk Housing Cooperative Society Ltd Rs.6,31,71,773/- and the assessee could not furnish the details as sought for. Accordingly, the Assessing Officer in the absence of details of ledger completed the assessment by passing an order u/s 147 of the Act by making an addition u/s 68 of the Act as unexplained cash credits.
Aggrieved by the above order, the assessee preferred an appeal before the ld. CIT(A), however, the appeal of the assessee was partly allowed without looking into the various details or merits of the case.
Dissatisfied with the above order, the assessee come in appeal before us. The ld. counsel has submitted that the alleged cash deposits in bank accounts were out of their daily transactions only. The ld. counsel further submitted that the assessee is a co- operative society and is working for its members wherein collections from members towards GDC, Recurring Deposit and Saving Bank Deposits were deposited in various bank accounts after meeting the daily expenses and other payments and the details of day book of the society during demonetization period was provided to the lower authorities and also the name of the members from whom the collections were made was already reflected in the day book which was submitted. The ld. AR submitted that the Assessing Officer did not consider the day book of the society and the name and address of its members from whom the deposits are accepted. The ld. AR again submitted that there were no unexplained cash deposits in the bank account of the appellant. The ld. AR prayed for one more opportunity may be given to produce the bank statements and ledger details before the Assessing Officer to prove the case of the assessee.
We, after hearing the submission of both the parties and perusing the materials available on record, find that the Assessing Officer made the alleged addition u/s 68 of the Act without properly considering the details or documents submitted by the assessee and the assessee did not get proper opportunity before the lower authorities. Therefore, in the interests of justice and fair play, we deem it necessary to remand back the whole issue to the file of the Assessing Officer with a direction to re-examine the issue afresh after considering all details or documents which will be submitted by the assessee during the remand proceedings and to pass a speaking order in accordance with law.
In terms of the above, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 10.06.2025.