SHRI MAHALAXMI AGRICULTURE PRODUCER PROCESSING CO OP SOCIETY LTD,BELGAUM V. INCOME TAX OFFICER, BELGAUM

ITA 330/PAN/2025

AI Insights

The case involves Shri Mahalaxmi Agriculture Producer Processing Co-op Society, which appealed against the order of the CIT(A) sustaining the addition of unexplained cash deposits under section 69A of the Income Tax Act, 1961. The Assessing Officer had initially made the addition following an ex-parte assessment under sections 147, 144, and 144B of the Act, due to non-compliance by the assessee in providing explanations for substantial cash deposits in their bank account. The CIT(A) upheld the AO's decision, leading to the appeal before the Tribunal. The Tribunal found that the CIT(A) had not adequately considered the reasons for the assessee's non-compliance and decided to provide another opportunity for the assessee to present their case.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 847550 (ITAT-PANAJI)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Panaji
• Assessment Year: 2018-2019
• Appeal Filed On: 06-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIJULA UNIYAL.
• Assessee Lawyers: JAYKUMAR PATIL
• Keywords: Set aside; Reasonable cause; Principle of natural justice; Reason to believe
• Section: 144; 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI GD PADMAHSHALI, ACCOUNTANT MEMBER I T A. No.330/PAN/2025 (A.Y. 2018-19) Shri Mahalaxmi Agriculture Producer Processing Co-op Society, Topinkatti, Khanapur, Belgavi-591302, Karnataka. Vs . I T O, National e Assessment Centre, Delhi. PAN.NO.AAQAS9729M (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee by Shri.Jaykumar Patil.AR Revenue by Smt.Rijula Uniyal.Sr.DR सुनवाई की तारीख/Date of Hearing 26.03.2026 घोषणा की तारीख/Date of Pronouncement 27.03.2026 ORDER PER PAVAN KUMAR GADALE ,JM: The assesse has filed the appeal against the order of the NFAC/CIT (A) passed U/sec147r.w.s144and u/sec 250 of the Act. The assesse has raised the grounds of appeal challenging the ex-parte order of the CIT(A) sustaining the addition of unexplained cash deposits u/sec69A of the Act made by the Assessing Officer. 2. The brief facts of the case are that, the assessee is a cooperative credit society and is engaged in activities of providing credit facilities to its members. The Assessing Officer (AO) based on the information from ITBA NMS Printed from counselvise.com 2 ITA. No.330/PAN/2026 Shri.Mahalaxmi Agriculture Producer processing Coop Society Limited. portal found that the assessee has made cash deposits of Rs.1,50,19,129/- and withdrawls in the bank account maintained with the Federal Bank Limited in the F.Y.2017-18 and the assessee has not filed the return of income for the impugned assessment year 2018-19.The Assessing officer (A.O) has reason to believe that the income has escaped the assessment and issued notice u/sec148 of the Act. Further notice u/sec143 (2) and u/sec 142(1) of the Act are issued to substantiate the sources of cash deposits. Since, no explanations/details were filed, the AO considering the information available on record has invoked the provisions of Sec.144 of the Act and made addition of unexplained cash deposits u/sec69A of the Act and assessed the total income of Rs.1,50,19,129/- and passed the order u/sec147r.w.s 144 r.w.s144B of the Act dated 14.02.2024. 3. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assessee.Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. Printed from counselvise.com 3 ITA. No.330/PAN/2026 Shri.Mahalaxmi Agriculture Producer processing Coop Society Limited. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information of the assessment proceedings. The Ld.AR submitted the affidavit of the assessee explaining the reasonable cause for noncompliance of notices issued by the Assessing Officer and CIT(A) in the hearing proceedings. Further the assesse has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Per Contra, the Ld.DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing on various dates referred at Page 3 Para 4 of the order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assesse has raised grounds of appeal challenging the addition u/sec69A of the Act made by the A.O and there could be various reasons for non appearance/ compliance Printed from counselvise.com 4 ITA. No.330/PAN/2026 Shri.Mahalaxmi Agriculture Producer processing Coop Society Limited. which cannot be overruled. Therefore, considering the facts and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, We set aside the order of the CIT(A) and remit the disputed issues to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information. And the grounds of appeal of the assesse are allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 27.03.2026. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji, Dated: 27/03/2026 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT 6. Guard file. Printed from counselvise.com 5 ITA. No.330/PAN/2026 Shri.Mahalaxmi Agriculture Producer processing Coop Society Limited. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed Printed from counselvise.com "