NANDAN LIVE STOCK DEVELOPMENT CO-OPERATIVE SOCIETY LTD.,BURDWAN V. A.C.I.T., CIRCLE - 1, DURGAPUR

ITA 2057/KOL/2024

AI Insights

The case involves the Nandan Live Stock Development Cooperative Society Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The appeal was concerning the assessment year 2017-18, where the assessee, engaged in poultry farming, declared a 'NIL' income and claimed exemption under section 80P(2)(19) of the Income Tax Act, 1961. The Assessing Officer had added Rs. 15,27,000 to the assessee's income, citing unexplained cash credit under section 68 of the Income Tax Act, due to cash deposits during the demonetization period. The Tribunal found that the assessee was not given sufficient opportunity to substantiate its claims and thus remitted the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314551 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences; Unexplained cash credit; Principle of natural justice
• Section: 142(1); 68

Judgement Text

" ITA No. 2057/KOL/2024 (A.Y. 2017-2018) Nandan Live Stock Development Cooperative Society Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) I.T.A. No. 2057/KOL/2024 Assessment Year: 2017-2018 Nandan Live Stock Development Cooperative Society Limited,………………………….……..……Appellant C/o. Jain Vinod K & Associates, 41A, A.J.C. Bose Road, Diamond Prestige Nirman, 6th Floor, Suite No. 613, Kolkata-700017 [PAN:AAAAN5417B] -Vs.- Assistant Commissioner of Income Tax,...Respondent Circle-1, Durgapur, Aayakar Bhawan, City Centre, Durgapur-734101, West Bengal Appearances by: Shri Vinod Jain, A.R., appeared on behalf of the assessee Ms. Madhumita Das, Addl. CIT, appeared on behalf of the Revenue Date of concluding the hearing: February 24, 2025 Date of pronouncing the order: May 06, 2025 O R D E R The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 6th August, 2024 passed for Assessment Year 2017-18. ITA No. 2057/KOL/2024 (A.Y. 2017-2018) Nandan Live Stock Development Cooperative Society Limited 2 2. Brief facts of the case are that the assessee-Society is engaged in the business of Poultry Firming on cooperative basis. The assessee filed its return of income electronically on 11.12.2019 for the assessment year 2017-18 after claiming of exemption under section 80P(2)(19) of the Income Tax Act, 1961 declaring total income at ‘NIL’ The case was selected for scrutiny under CASS. Accordingly, notice under section 143(2) of the Act was issued to the assessee by the ld. Assessing Officer on 21.09.2018 fixing the date of hearing on 28.09.2018. Thereafter notice under section 142(1) along with questionnaire was issued on 24.05.2019, which was duly served upon the assessee. Thereafter the case was re- fixed for submitting requisite information/documents on 21.08.2019, 11.11.2019 and 25.11.2019. In response, the assessee submitted its reply through e-filing portal in ITBA. On 25.06.2019 and 28.11.2019, the assessee uploaded copy of balance-sheet, profit & loss account, supporting documents related for party-wise cash received during demonetization period. Not being satisfied, the ld. Assessing Officer issued a show-cause notice dated 10.12.2019 asking the assessee why the cash deposit during demonetization period of demonetized currency of Rs.15,27,000/- should not be added back to the total income on account of unexplained cash credit under section 68 of the Income Tax Act. Not getting satisfactory reply from the assessee, the ld. Assessing Officer passed the assessment order assessing the total income at Rs.15,27,000/-. ITA No. 2057/KOL/2024 (A.Y. 2017-2018) Nandan Live Stock Development Cooperative Society Limited 3 3. On being aggrieved, the assessee preferred an appeal before the ld. CT(Appeals). The ld. CIT(Appeals) uphold the order passed by the ld. Assessing Officer. 4. The ld. Counsel for the assessee at the time of hearing argued that the revenue authorities have not given sufficient opportunity to the assessee to substantiate its claim. Therefore, he pleaded to set aside the order passed by the ld. CIT(Appeals) and remit the issue back to the file of ld. Assessing Officer to examine the issues afresh. 5. On the other hand, ld. Departmental Representative submitted that sufficient opportunity was being provided to the assessee to substantiate its claim but the assessee failed to produce the supporting evidences towards cash deposited in the Bank during demonetization period and the source thereof. Therefore, the ld. CIT(Appeals) has no other option except dismissing the appeal and he pleaded to uphold the order passed by the ld. CIT(Appeals). 6. I have heard both the sides and perused the material available on record. It was the submission of the assessee that the revenue authorities have not given sufficient opportunity to the assessee to substantiate its claim. The ld. Counsel for the assessee further submitted that the assessee filed all the relevant documents by way of paper book especially pages no.119 to 143. Therefore, he pleaded before me that one more opportunity to be given before the ld. Assessing Officer to examine the documents ITA No. 2057/KOL/2024 (A.Y. 2017-2018) Nandan Live Stock Development Cooperative Society Limited 4 and dispose of the case afresh. The ld. D.R. has not raised any objection if the matter is remitted back to the file of ld. Assessing Officer to examine it afresh. 7. Considering the facts and circumstances of the case, I am inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. Assessing Officer to examine the documents afresh, which were filed by way of paper book especially from pages no. 119 to 143 with a direction to provide one more opportunity of being heard to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. Assessing Officer failing which the Ld. Assessing Officer shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 06/05/2025. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 6th day of May, 2025 Copies to :(1) Nandan Live Stock Development Cooperative Society Limited, C/o. Jain Vinod K & Associates, ITA No. 2057/KOL/2024 (A.Y. 2017-2018) Nandan Live Stock Development Cooperative Society Limited 5 41A, A.J.C. Bose Road, Diamond Prestige Nirman, 6th Floor, Suite No. 613, Kolkata-700017 (2) Assistant Commissioner of Income Tax, Circle-1, Durgapur, Aayakar Bhawan, City Centre, Durgapur-734101, West Bengal (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) CIT - , Kolkata; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "