SHREE JADEYA SHANKARLING URBAN CO-OP. CREDIT SOCIETY LIMITED ,HUBBALLI vs. INCOME TAX OFFICER, WARD-2(3), HUBBALLI

ITA 2893/BANG/2025Status: DisposedITAT Bangalore17 March 2026AY 2017-181 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the addition under Section 68 was misplaced as the assessee had provided details of members and the nature of transactions. The mere fact that demonetised notes were accepted by the society did not automatically make the credits unexplained.

What were the facts?

The assessee, a credit co-operative society, deposited demonetised currency notes totaling Rs. 13,69,500/- during the demonetisation period. The assessee claimed these deposits represented loan repayments and other collections from its members.

What were the issues?

Whether cash deposits made in demonetised notes by a co-operative society during the demonetisation period can be treated as unexplained cash credits under Section 68, and if the society was prohibited from accepting such notes.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE,Section 269SS

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Income Tax Appellate Tribunal, ‘SMC’ BENCH, BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

For Appellant: Shri Santhosh Magavi, Advocate
For Respondent: Shri Ganesh R Ghale, Advocate – Standing
Hearing: 12.03.2026Pronounced: 17.03.2026

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The present appeal has been instituted by the assessee against the order of the office of the Commissioner of Income – Tax (Appeal), Addl/JCIT – 4, Chennai dated 21.10.2025 for the assessment year 2017-

18.2.

The only issue raised by the assessee is that the revenue authority erred in taxing the cash deposit made in demonetised note under section 68 of the Act.

3.

The relevant facts are that the assessee society during the demonetisation (9th November 2016 to 31st December 2016) made cash deposit for a sum of Rs. 27,12,500/- out of which a sum of Rs.13,69,500/- was in spec

The order continues below.

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