M/S Bhagur Urban Credit Co-operative Society Ltd, Nashik, Nashik V. Income Tax Officer, Ward 1(1), Nashik, Nashik

ITA 561/PUN/2022

AI Insights

The case involves M/s. Bhagur Urban Credit Co-operative Society Ltd., which appealed against the order of the NFAC, Delhi, concerning an addition of Rs.1,78,500/- to their income for the assessment year 2017-18. This addition was initially made by the Assessing Officer under section 68 of the Income-tax Act, 1961, due to deposits made during the demonetization period, which were suspected to be unexplained. The assessee provided details of the depositors, asserting the legitimacy of the transactions. The Tribunal, referencing similar cases and precedents, found in favor of the assessee, leading to the allowance of the appeal and the deletion of the addition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124152 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 02-01-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 19-07-2022
• Other Referred Cases: Prathamika Krushi Pattina Sahakari Sangha Niyamitha Itagi Pkpssn vs. ITO, Bhageeratha Pattina Sahakara Sangha Niyamitha vs. ITO
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.561/PUN/2022 नधा रण वष / Assessment Year : 2017-18 M/s. Bhagur Urban Credit Co-operative Society Ltd., House No.71, Karanjkar Galli, Sukarpur Peth, At Post Bhagur, Taluka Nashik, Dist. Nashik 422 502 PAN : AACAB3704B Vs. ITO, Ward-1(1), Nashik Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee arises out of the order dated 21-06-2022 passed by the National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2017-18. 2. The only issue raised in this appeal is against the confirmation of addition of Rs.1,78,500/- made by the Assessing Officer (AO) u/s.68 of the Act. 3. Briefly stated, the facts of the case are that the assessee is a Cooperative Credit Society. A return was filed declaring total income Assessee by Shri Sanket Joshi Revenue by Shri Piyush Kumar Singh Yadav Date of hearing 03-01-2023 Date of pronouncement 03-01-2023 ITA No. 561/PUN/2022 M/s. Bhagur Urban Credit Co-operative Society Ltd., 2 at Rs.27,520/-. The case was selected for scrutiny on the ground that the assessee deposited large sums during demonetization period. On being called upon to explain the source of the deposits in the bank, the assessee submitted that the deposits were received from 15 members totalling upto Rs.1,78,500/- in old currency between 09-11-2016 to 11-11-2016, which were deposited in the bank account. The assessee furnished details of the depositors with the relevant particulars and also offered to present them before the AO. Not convinced, the AO made the addition for such sum u/s 68 of the Act, which came to be affirmed in the first appeal. Aggrieved thereby, the assessee has approached the Tribunal. 4. I have heard the rival submissions and perused the relevant material on record. It is seen that the assessee is a Urban Cooperative Credit Society which received Rs.1,78,400/- from 15 depositors whose all the necessary particulars have been given. The list comprises receipt of Rs.85,970/- from 3 small saving agents and Rs.94,000/- from 12 customers. The assessee furnished necessary details in respect of the depositors. The AO refused to accept the genuineness of the transaction and made the addition u/s.68 of the Act. The ld. AR has brought to my notice an order passed by the Bangalore Bench of the Tribunal in Prathamika Krushi Pattina ITA No. 561/PUN/2022 M/s. Bhagur Urban Credit Co-operative Society Ltd., 3 Sahakari Sangha Niyamitha Itagi Pkpssn (ITA No.593/Bang/2021) dt. 01-06-2022 in which the addition made under similar circumstances has been deleted. In this order, the Tribunal relied on another order in Bhageeratha Pattina Sahakara Sangha Niyamitha Vs. ITO – ITA No.646/Bang/2021 dt. 18-02-2022, that has been referred to in para 5 of the order. No contrary order on such facts, in favour of the Revenue, has been brought on record by the ld. DR. Respectfully following the precedent, I overturn the impugned order and direct to delete the addition of Rs.1,78,500/- sustained in the first appeal. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 03 rd January, 2023. Sd/- (R.S.SYAL) VICE PRESIDENT प ु णे Pune; दनांक Dated : 03 rd January, 2023 Satish ITA No. 561/PUN/2022 M/s. Bhagur Urban Credit Co-operative Society Ltd., 4 आदेश क त ल प अ े षत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. The CIT(A) concerned 4. 5. The Pr.CIT concerned िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, SMC, Pune / DR, ITAT, Pune 6. गाड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 03-01-2023 Sr.PS 2. Draft placed before author 03-01-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *