PURNEA SANJUKTA VYAPAR MANDAL SAHYOG SAMITI LIMITED,GULABBAGH V. INCOME TAX OFFICER, NFAC

ITA 12/PAT/2025

AI Insights

The case involves Purnea Sanjukta Vyapar Mandal Sahyog Samity Limited, an agricultural cooperative society, appealing against the order of the Commissioner of Income Tax (Appeals), which confirmed an addition of Rs.4,19,050 to their income as unexplained cash credits. The Assessing Officer had treated the credits in the society's bank account as turnover and added them to the income. The society argued that these were not sales but funds received back from farmers, which were misinterpreted by the Assessing Officer. The tribunal, after considering the submissions and the nature of the society's operations, decided in favor of the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471227 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Unexplained cash credit
• Section: 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PATNA “SMC” BENCH, VIRTUAL HEARING AT KOLKATA Before SRI SANJAY GARG, JUDICIAL MEMBER I.T.A. No.: 12/PAT/2025 Assessment Year: 2018-19 Purnea Sanjukta Vyapar Mandal Sahyog Samity Limited ………….. Appellant Vyapar Mandal Gulabbagh, Gulabbagh S.O. Gulabbagh, Purnea, Bihar-854326 (PAN: AACAP3972B) Vs. ITO, Ward-3(1), Purnea .............. Respondent Appearances: Appellant represented by: Shri Narendra Jain, AR Respondent represented by: Shri Ashwani Kumar, Sr. DR Date of concluding the hearing : 10.02.2025 Date of pronouncing the order : 10.02.2025 ORDER The captioned appeal has been preferred by the assessee against the order dated 04.06.2024 of the Ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre, Delhi [hereinafter referred to as Ld. ‘CIT(A)’] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year (AY) 2018-19. 2. Appeal of the assessee is time barred by 134 days. An application for condonation of delay has been filed. Considering the averments made in the application, delay in filing the appeal is hereby condoned and the appeal is taken up for hearing. 3. The assessee is aggrieved by the action of the Ld. CIT(A) in confirming the addition made by the Assessing Officer of Rs.4,19,050/- on account of unexplained cash credits in the bank account of the assessee. 4. At the outset, the Ld. Counsel for the assessee has submitted that the assessee is an agricultural Cooperative Society and it is not into any business I.T.A. No.: 12/PAT/2025 Purnea Sanjukta Vyapar Mandal Sahayog Samity Ltd., AY : 2018-19 Page 2 of 3 of earning of profit. It receives funds from the government for further distribution to the farmers. The assessee also gives funds on credits to the farmers. The Ld. Counsel for the assessee has submitted that the Assessing Officer treated the entire credits in the bank account of the assessee as turnover of the assessee and made the impugned addition. The Assessing Officer noted that there was certain amount of cash deposit in the bank account of the assessee regarding which the assessee could not explain properly. 5. On the other hand, the ld. AR of the assessee has explained that the aforesaid cash deposits were out of the amount received back from the farmers. He has submitted that the Assessing Officer has not justified in treating the entire credits into the account of the assessee as sales turnover of the assessee. He has submitted that the assessee has a GST number and the sales turnover over is recorded in the GST return. The Ld. DR could not rebut the aforesaid contention of the Ld. AR of the assessee. 6. Considering the above facts and circumstances, in my view the impugned addition is not justified and the same is accordingly ordered to be deleted. 7. In the result, the appeal of the assessee stands allowed. Order pronounced in the open Court. Sd/- [Sanjay Garg] Judicial Member Dated: 10.02.2025 J.Dey (Sr. P.S.) I.T.A. No.: 12/PAT/2025 Purnea Sanjukta Vyapar Mandal Sahayog Samity Ltd., AY : 2018-19 Page 3 of 3 Copy of the order forwarded to: 1. Appellant : Purnea Sanjukta Vyapar Mandal Sahayog Samity Ltd. 2. Respondent : ITO, Ward-3(1), Purnea 3. CIT(A), NFAC, Delhi 4. CIT 5. DR, ITAT, Patna Bench, Patna. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Patna Benches Patna "