HUDHYASHWAR NAGARI SAHAKARI PATH SANSTA MARYADIT ,NASHIK V. ITO WARD 1(1), NASHIK

ITA 12/PUN/2025

AI Insights

The case involves Hudhyashwar Nagari Sahakari Path Sansta Maryadit, a cooperative society, which appealed against the order of the CIT(A)/NFAC arising from an assessment order under section 144 of the Income Tax Act for the Assessment Year 2017-18. The primary issue was the unexplained source of a cash deposit of Rs.12,40,500 during the demonetization period. The assessee argued that the deposits were from SBNs received from its members, supported by various tribunal decisions. The Income Tax Officer (ITO) had initially rejected the explanation, leading to the appeal. The Tribunal found that the Assessing Officer had not thoroughly examined the submissions and directed a de novo assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474164 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: ITO vs. C.D. Patani Nagari Sahakari Patsanstha, Shreejit Finance Pvt. Ltd. vs. ACIT, Bhagur Urban Credit Co-op. Society Ltd. vs. ITO, ITO vs. Ambika Gramin Bigersheti Sahakari Patsanstha, Mauli Mahila Nagari Sahakari Patsanstha Ltd. vs. ITO, Maharudra Gramin Bigarsheti Sahakari Patsanstha Ltd. vs. ITO
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVIYOGI AMBADKAR
• Assessee Lawyers: SANKET JOSHI
• Keywords: Condonation of delay; Opportunity of being heard; Reasonable cause
• Section: 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.12/PUN/2025 िनधाᭅरण वषᭅ / Assessment Year : 2017-18 Hudhyashwar Nagari Sahakari Path Sansta Maryadit, Samarth Apartment, Sramik Nagar, Satpur, Nashik- 422012. PAN : AABTH3975L Vs. ITO, Ward-1(1), Nashik. Appellant Respondent आदेश / ORDER PER MANISH BORAD, AM: This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC dated 30.10.2024 which is arising out of the assessment order u/s 144 of the Act for Assessment Year 2017-18 framed on 28.11.2019 by the ITO, Wart-1(1), Nashik. Assessee by : Shri Sanket Joshi Revenue by : Shri Aviyogi Ambadkar Date of hearing : 10.03.2025 Date of pronouncement : 24.03.2025 ITA No.12/PUN/2025 2 2. Registry has informed that there is a delay of 4 days in filing of the instant appeal. Application for condonation of delay has been filed and considering the contents of the same, we find that the assessee was prevented by reasonable cause in filing the appeal in time. We accordingly condone the delay and admit the appeal for adjudication. 3. At the outset, Ld. Counsel for the assessee submitted that the assessment order has been framed u/s 144 of the Act and the assessee could not furnish the details to explain the source of alleged cash deposit of Rs.12,40,500/-. He also submitted that there are plethora of decisions including that of the Hon’ble Tribunal wherein it has been held that where the source of cash deposits made during the demonetization period by cooperative credit society is explained to be out of SBNs received from members by providing identity of such members, then no addition can be made by treating the said deposits as unexplained income merely on the ground that the cooperative societies were not entitled to accept SBNs from its members. Reliance placed on following decisions :- (i) ITO vs. C.D. Patani Nagari Sahakari Patsanstha [ITA No.727/PUN/2022] dated 28.03.2023. ITA No.12/PUN/2025 3 (ii) Shreejit Finance Pvt. Ltd. vs. ACIT [ITA No.439/PUN/2022] dated 22.04.2024. (iii) Bhagur Urban Credit Co-op. Society Ltd. vs. ITO [ITA No.561/PUN/2022] dated 03.01.2023. (iv) ITO vs. Ambika Gramin Bigersheti Sahakari Patsanstha [ITA No.1104/PUN/2023] dated 04.06.2024. (v) Mauli Mahila Nagari Sahakari Patsanstha Ltd. vs. ITO [ITA No.1351/PUN/2023] dated 12.09.2024. (vi) Maharudra Gramin Bigarsheti Sahakari Patsanstha Ltd. vs. ITO [ITA No.1777/PUN/2024] dated 12.12.2024. 4. On the other hand, Ld. DR supported the order of Ld. CIT(A)/NFAC stating that remand report was called for and assessee failed to explain the source of alleged cash deposits. 5. We have heard rival contentions and perused the records placed before us. The assessee which is a cooperative society was found to have deposited cash during the demonetization period in NDDC Bank at Rs.12,40,500/-. The assessee society did not file the return of income. Though the assessee failed to satisfy both the lower authorities, before us the assessee has furnished copies of submission filed before the Assessing Officer on 25.11.2019 which seems to have not examined thoroughly by the Assessing Officer as ITA No.12/PUN/2025 4 no further enquiry was conducted to verify the claim of the assessee. Further, the assessee has filed the copy of ledger account of its members who are alleged to have given the cash to the assessee society for opening new account and also filed the copy of paper book along with submission filed before Ld. CIT(A)/NFAC on 08.11.2022. Therefore, considering all the above referred facts and also considering the ratio laid down by this Tribunal in decisions referred above in para 3, since the claim of the assessee is that alleged sums have been received from its members, we deem it appropriate to restore the matter to the file of Ld. Jurisdictional Assessing Officer to carry out de novo assessment proceedings and shall verify the claim of the assessee after conducting due enquiry from the members who have alleged to have given cash to the assessee society. For carrying out this exercise, Ld. Jurisdictional Assessing Officer shall provide reasonable opportunity of being heard to the assessee. The assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. ITA No.12/PUN/2025 5 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 24th day of March, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 24th March, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "