SHRI NIMAR SWETAMBER JAIN CREDIT CO-OP. SOCIETY LTD.,BARWAH vs. ITO, KHARGONE
What did the Tribunal hold?
The Tribunal found the assessee's explanation regarding the collection and deposit of the impugned amount to be genuine and supported by corroborative evidence. Therefore, the addition made under Section 69 was deemed unsustainable.
What were the facts?
The assessee's appeal was filed with a delay of 14 days, which was condoned due to the COVID-19 pandemic. The primary issue concerned an addition of Rs. 4,97,000 made under Section 69 of the Income Tax Act.
What were the issues?
Whether the addition made under Section 69 for cash collected by an agent before demonetization and deposited shortly after is sustainable when supported by evidence.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: Ms. MADHUMITA ROY & SHRI BHAGIRATH MAL BIYANI
The instant appeal filed by the assessee is directed against the order dated 30.11.2021 passed by the National Faceless Appeal Centre (NFAC), Delhi arising out of the order dated 22.12.2019 passed by the Income Tax Officer, Khargone under section 143(3) of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2017-18.
(M/s. Shree Nimar Swetamber Jain) Asst.Year.– 2017-18 - 2 -
There is a delay of 14 days in preferring the instant appeal, which is otherwise covered by the judgment passed by the Hon’ble Apex Court due to Covid-19 pandemic and Lockdown which made assessee unable to file the appeal in time. We therefore having regard to the facts and the judgment passed by the Hon'ble Apex Court, condone the delay.
Ground No.1 is not pressed by assessee. Thus, Ground No.1 is dismissed as not pressed.
Ground No.2 relates to addition of Rs.4,97,000/-.
The case of the assessee before us is this that the impugned amount has been collected by its agent one week before the demonetization and since 09.11.2016 being a holiday, the same could not be deposited. However, the same was deposited on 10.11.2016. Though, this particular fact has been brought to the notice of the Ld.AO and explained duly by the assessee with all supporting documents alongwith lists of these agents, the same was found to be not acceptable and the addition has been made under Section 69 of the Act which is not sustainable in view of the fact as narrated hereinabove. In view of the matter, he prays for deletion of addition made by the authorities below. With all his fairness, the Ld.DR has not raised any serious objection to such submissions of Ld.AR.
We have heard the Ld. Counsel appearing for the parties and we have also considered the relevant materials available on record. We find that the submission made by the assessee which is supported by the corroborative (M/s. Shree Nimar Swetamber Jain) Asst.Year.– 2017-18 - 3 - evidences seems to be genuine and therefore, the addition made under Section 69 of the Act is found to be not sustainable. The addition is, therefore, deleted,
In the result, assessee’s appeal is partly allowed for statistical purposes.
This Order pronounced in Open Court on 19/09/2022
Sd/- Sd/- (BHAGIRATH MAL BIYANI) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore; Dated 19/09/2022 S. K. Sinha, Sr. PS TRUE COPY आदेश क� �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Indore 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,
More judgments on Section 69
- Azure Knowledge Corporation Private… vs The Dy.CIT, Circle-1(1)(1), AhmedabadITA 2013/AHD/2024[2018-19]Status: Disposed19 Oct 2026AY 2018-19
- Naresh Chandra Khattar, Agra vs ITO Ward-1(1)(2), AgraITA 475/AGR/2026[2019-20]Status: Disposed16 Oct 2026AY 2019-20
- Ranchhodbhai Kurjibhai Kakadiya, Rajkot vs Income Tax Officer, Ward-1(1)(1), RajkotITA 553/RJT/2025[2019-20]Status: Disposed16 Oct 2026AY 2019-20
- Gorantla Rahul Kumar, Visakhapatnam vs The Asst. Commissioner of Income Tax…ITA 670/VIZ/2025[2021-22]Status: Disposed16 Oct 2026AY 2021-22
- Gorantla Rahul Kumar, Visakhapatnam vs The Asst. Commissioner of Income Tax…ITA 669/VIZ/2025[2020-21]Status: Disposed16 Oct 2026AY 2020-21
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