BISHANKHEDI GRAM SEVA SAHKARI SAMITI LIMITED,VILLAGE BISHANKHEDI JHALAWAR V. ITO, WD, JHALAWAR ASSESSING OFFICER, JHALAWAR

ITA 474/JPR/2025

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The case involves Bishankhedi Gram Seva Sahkari Samiti Limited, a cooperative society engaged in trading fertilizers, seeds, and pesticides, which appealed against the order of the Learned CIT(A) confirming the assessment order passed by the Assessing Officer. The assessment order included an addition of Rs. 5,57,000 under section 68 of the Income Tax Act, 1961, which was charged to tax separately under section 115BBE. The addition was based on the society's deposit of old currency notes during the demonetization period, which the Assessing Officer deemed not permissible and lacked evidence of genuine transactions. The Tribunal found that the society had submitted confirmations from its members regarding the deposits as loan repayments, but these were not in the form of affidavits. The Tribunal decided to remand the case for a fresh assessment, allowing the society another opportunity to substantiate its claims.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712211 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: GAUTAM SINGH CHOUDHARY
• Assessee Lawyers: MANISH KUMAR JAIN
• Keywords: Opportunity of being heard
• Section: 144

Judgement Text

" vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”SMC” JAIPUR Jh jkBkSM+ deys'k t;UrHkkbZ] ys[kk lnL; ,o Jh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRI RATHOD KAMLESH JAYANTBHAI, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 474/JPR/2025 fu/kZkj.k o\"kZ@Assessment Year : 2017-18 Bishankhedi Gram Seva Sahkari Samiti Limited. Vill- Bishnakhedi Th Jhalrapathan, Jhalawar. cuke Vs. The ITO, Ward, Jhalawar. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AADAB5356L vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@Assessee by : Sh. Manish Kumar Jain, C.A. (through V.C.) jktLo dh vksj ls@Revenue by: Sh. Gautam Singh Choudhary, JCIT lquokbZ dh rkjh[k@Date of Hearing : 30/07/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 31/07/2025 vkns'k@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. Printed from counselvise.com 2 ITA No. 474/JPR/2025 Bishankhedi Gram Seva Sahkar Samiti Ltd. , Jhalawar 2. Arguments heard. File perused. 3. 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. 4. 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. 5. 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 Printed from counselvise.com 3 ITA No. 474/JPR/2025 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. 6. 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). 7. 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. 8. 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. Printed from counselvise.com 4 ITA No. 474/JPR/2025 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. 9. 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. Result 10. Consequently, this appeal is disposed of, for statistical purposes and while setting aside the impugned order passed by Learned CIT(A), the matter is restored to the files of the Assessing Officer with direction to decide afresh the issue regarding deposit of cash during demonetization period, after providing reasonable opportunity of being heard to the appellant society. The Assessing Officer may also resort to the provisions Printed from counselvise.com 5 ITA No. 474/JPR/2025 Bishankhedi Gram Seva Sahkar Samiti Ltd. , Jhalawar of section 133 of the Act by issuing notices to the concerned members of the society if so desired. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 31/07/2025. Sd/- Sd/- ¼jkBkSM+ deys'k t;UrHkkbZ ½ ¼ujsUnz dqekj½ (RATHOD KAMLESH JAYANTBHAI) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 31/07/2025 *Santosh vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Bishankhedi Gram Seva Sahkari Samiti, Jhalawar. 2. izR;FkhZ@ The Respondent- ITO, Ward, Jhalawar. 3. vk;dj vk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZ QkbZy@ Guard File ITA No. 474/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar Printed from counselvise.com "