CHAUNTRA SERVICE CO-OPERATIVE SOCIETY LIMITED,MANDI V. INCOME TAX OFFICER, WARD, MANDI, MANDI

ITA 579/CHANDI/2025

AI Insights

The case involves Chauntra Service Co-operative Society Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) Addl./JCIT(A)-2, Gurgaon, pertaining to the assessment year 2017-18. The primary contention was regarding the additions made by the Assessing Officer, which included Rs. 12,00,000 for cash deposits received during the demonetization period and Rs. 4,14,248 related to provisions in the balance sheet. The Tribunal found that the addition related to the demonetization period was not justified as the source of the deposits was not in question, leading to the deletion of this addition. The second ground concerning the balance sheet provisions was dismissed as the appellant did not pursue it.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783193 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2017-2018
• Appeal Filed On: 21-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: ASHWANI KUMAR

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ “एकल” चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “SMC” CHANDIGARH Įी संजय गग[, ÛयाǓयक सदèय BEFORE: SH. SANJAY GARG, JUDICIAL MEMBER आयकर अपील सं./ ITA No.579/CHD/2025 Ǔनधा[रण वष[ / Assessment Year : 2017-18 Chauntra Service Co-operative Society Limited, Kohra, Sanithal Joginder Nagar, Mandi. बनाम The ITO, Ward, Mandi. èथायी लेखा सं./PAN NO: AAHFC7914Q अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Ashwani Kumar, CA and Ms. Deepali Aggarwal, CA राजèव कȧ ओर से/ Revenue by : Shri Vivek Vardhan,Addl. CIT, Sr.DR सुनवाई कȧ तारȣख/Date of Hearing : 04.11.2025 उदघोषणा कȧ तारȣख/Date of Pronouncement : 06.11.2025 HYBRID HEARING आदेश/ORDER The present appeal has been preferred by the assessee against the order dated 31.03.2025 of the Commissioner of Income Tax (Appeals) Addl./JCIT(A)-2, Gurgaon [in short ‘the CIT (Appeals)] pertaining to 2017-18 assessment year. Printed from counselvise.com ITA 579/CHD/2025 A.Y. 2017-18 2 2. The assessee in this appeal has taken the following grounds of appeal : 1. That order passed it's 250 of the Income Tax Act, S96I by (he Learned Addl. Commissioner of Income Tax ( Appeals )-2, Gurugram is against law and facts on the file in as much as Learned CIT(Appeal) was not justified to uphold the addition of Rs. 12,00.000'- made by the Learned Assessing Officer on account of cash deposited during demonetization period. 2. That the Learned CIT(A) gravely cited in upholding the addition of Rs. 4,14,248/- made by the Learned Assessing Officer which actually pertains to provisions made in the balance sheet. 3. At the outset, the ld. counsel for the assessee has stated at bar that he does not press ground No.2 of appeal, therefore, ground No.2 of the appeal is dismissed as not pressed. 4. So far as the addition made by the lower authorities of Rs.12 lacs on account of amount received by the assessee from its members is concerned, the receipt of the amount from members has not been doubted by the Assessing Officer. The only allegation is that the amount was received on 15.11.2016 i.e. during demonetization period. The assessee may have violated the Circular/Notification issued by the Government by accepting the demonetized currency but it is not a case of unexplained income of the assessee. The source of the deposits has not been doubted by the lower authorities, therefore the impugned addition is not Printed from counselvise.com ITA 579/CHD/2025 A.Y. 2017-18 3 sustainable and the same is, accordingly, ordered to be deleted. 4. In the result, appeal of the assessee is partly allowed. Order pronounced on 06th November,2025. Sd/- ( संजय गग[) (SANJAY GARG ) ÛयाǓयक सदèय/ Judicial Member “Poonam” आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. आयकर आयुÈत (अपील)/ The CIT(A) 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 6. गाड[ फाईल/ Guard File Assistant Registrar Printed from counselvise.com "