KUNTALESHWAR GRAMIN BIGARSHETI SAHKARI PATSANSTHA LTD,AHMEDNAGAR vs. ITO- WARD 5, AHMEDNAGAR, AHMEDNAGAR

Tersely stated the facts of the case are that; the assessee is a credit co- operative society which filed its income tax return [‘ITR’ hereinafter] declaring total income at ₹NIL. The case of the assessee was selected for scrutiny under CASS. In ITAT-Pune Page 1 of 3

Kuntaleshwar Gramin Bigarsheti Sahakari Patsanstha Ltd. Vs ITO the event of assessee’s failure to comply with the notices and explain nature and source of ‘Special Bank Note’ [‘SBN’ hereinafter] ₹36,82,853/- deposited into its bank account during the period of demonetisation, the Ld. AO treated the same as unexplained money u/s 69A of the Act and accordingly framed the assessment u/s 144 of the Act and assessed the total income at ₹41,57,430/-. Aggrieved assessee contested the former addition in an appeal wherein Ld. NFAC granted the substantial relief to the assessee society by restricting the addition to ₹4,74,573/-.

Still aggrieved by the order of first appellate authority the assessee came in appeal with as many ten grounds which are argumentative in nature hence reproduction thereof for our adjudication deem unwarranted. However, it shall suffice to state that these grounds are collectively directed against (a) balance addition sustained by the Ld. NFAC and consequential denial of 80P(2) deduction.

Heard rival parties and subject to rule 18 of ITAT-Rules 1963 perused material placed on record and considered the fact & circumstances of the case in the light of settled legal position and case laws relied upon.

We note that, at the appellate stage the reconciliation of cash book could positively able to prove the actual cash deposit by the assessee during the declared period of demonetisation was ₹4,74,573/- as against the figure worked out by the Ld. AO during the course of assessment proceedings. In the larger interest of justice, the Ld. NFAC sought remand from field which however did fail to bring any satisfactory proof substantiating the nature & source of SBN available to assessee society, on the contrary the exercise revealed cat out of box that the appellant society did accept ITAT-Pune Page 2 of 3

The Ld. AR appearing on behalf the appellant society pleaded that, given an opportunity the assessee undertakes to place the details in support of assessee’s claim that the balance additions sustained in its case indeed represent the cash balance held by it as at the commencement of declared demonetisation. The Ld. DR could hardly dispute the request for remand. Having considered the facts holistically, without disturbing the partial relief granted, in the larger interest of justice we deem it necessary to remand the file of Ld. NFAC with the direction to accord an opportunity to the appellant to bring on record necessary/requisite material against the balance addition sustained by it and adjudicate the same in accordance with law.

The appeal in results is ALLOWED FOR STATISTICAL PURPOSES. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Thursday, 25th July, 2024.