RIDDHI SIDDHI MAHILA NAGARI CO-OP CREDIT SOCIETY LTD, KARAD,KARAD V. CIT (APPEALS), DELHI

SA 18/PUN/2025

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The case involves Riddhi Siddhi Mahila Nagari Co-op Credit Society Ltd., a cooperative society engaged in financial activities, which filed a Stay Application against the Income Tax Department's demand of Rs.12,29,55,906. The society declared a nil income in its return but was assessed with a substantial income including unexplained cash credits and undisclosed interest income. The society argued financial hardship due to attachment of bank accounts and inability to meet the demand, despite making partial payments. The Department opposed the stay, suggesting further deposit was necessary. The Tribunal, after considering the arguments and the lack of detailed financial submission from the assessee, decided not to grant an absolute stay but expedited the hearing of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779160 (ITAT-PUNE)
• Duration Of Justice: 8 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 17-10-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 09-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AJITESH MEENA
• Assessee Lawyers: VIJAYKUMAR N KSHIRSAGAR
• Keywords: Unexplained cash credit; Application of stay
• Section: 147; 148; 2

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER SA No.18/PUN/2025 Arising out of ITA No.2216/PUN/2025 Assessment year : 2019-20 Riddhi Siddhi Mahila Nagari Co-op Credit Society Ltd. Palkar House, 157, Guruwar Peth, Shri Vitthal Chouk, Karad – 415110, Satara Vs. ITO, Ward-1, Satara PAN: AACAR0958D (Applicant) (Respondent) Assessee by : Shri Vijaykumar N Kshirsagar Department by : Shri Ajitesh Meena, JCIT Date of hearing : 17-10-2025 Date of pronouncement : 17-10-2025 O R D E R PER R. K. PANDA, VP : The assessee through this Stay Application requests the Tribunal to stay on the realization of the outstanding demand of Rs.12,29,55,906/-. 2. The Ld. Counsel for the assessee referring to the contents of the Stay Application submitted that the assessee is a cooperative society engaged in accepting deposits from the Members and granting loans and advances to the Members. It filed its return of income declaring total income at Nil in response to the notice u/s 148 of the I T Act, 1961. The Assessing Officer completed the assessment u/s 147 r.w.s. 144B of the Act on 22.03.2024 determining the total income of the assessee at Rs.8,07,24,982/- wherein he made addition of Printed from counselvise.com 2 SA No.18/PUN/2025 Rs.7,81,16,000/- on account of unexplained cash credit, Rs.7,72,686/- on account of undisclosed interest income and Rs.18,36,296/- on account of disallowance u/s 80P(2). He submitted that the Ld. CIT(A) / NFAC in the ex-parte order passed by him has upheld the action of the Assessing Officer. The Ld. Counsel for the assessee submitted that the assessee is a small Patsanstha and the bank accounts have been attached and the small customers are demanding for withdrawal of amount from the Patsanstha for the forthcoming Diwali festival. He submitted that despite financial difficulties, the assessee has made voluntary payment of Rs.1,00,000/- and an amount of Rs.4,86,100/- has been adjusted against refund of Rs.4,86,100/- for assessment year 2024-25, both totaling to Rs.5,86,100/-. He submitted that the assessee is not in a position to pay a single rupee and the Income Tax Department in the meantime has already withdrawn an amount of Rs.25 lakhs from the account of Patsanstha. He accordingly submitted that full stay should be granted to the assessee with a direction to the Revenue to vacate the attachment on the bank accounts. He also requested for an out of turn hearing of the appeal. 3. The Ld. DR on the other hand strongly opposed the Stay Application and submitted that the assessee should be directed to deposit some further amount forthwith. 4. We have heard the rival contentions made by both sides and perused the record. In absence of submission of the financial details, we are not in a position to verify the genuineness of financial hardship as claimed by the assessee and therefore, are of the opinion that it is not a fit case for grant of absolute stay. We, Printed from counselvise.com 3 SA No.18/PUN/2025 therefore, dismiss the Stay Application filed by the assessee. However, the request of the Ld. Counsel for the assessee that an out of turn hearing be granted is accepted and the appeal is fixed for hearing on 28.10.2025 which was announced in the open Court. It was also announced that no separate notice of hearing shall be sent and this order itself will be deemed to be the service of notice to both the sides for which both the parties agreed. 5. In the result, the Stay Application filed by the assessee is disposed of in the above terms. Order pronounced in the open Court at the conclusion of hearing itself i.e. on 17th October, 2025. Sd/- Sd/- (VINAY BHAMORE) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 17th October, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘B’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune Printed from counselvise.com 4 SA No.18/PUN/2025 S.No. Details Date Initials Designation 1 Draft dictated on 17.10.2025 Sr. PS/PS 2 Draft placed before author 17.10.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order Printed from counselvise.com "