SRI GOURI PARAMESWARI COOPERATIVE THRIFT SOCIETY LIMITED,YELLAMANCHILI V. INCOME TAX OFFICER, WARD-2(5), VISAKHAPATNAM

ITA 155/VIZ/2024

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The case involves the Sri Gouri Parameswari Co-operative Thrift Society Limited, which appealed against the order of the Learned Commissioner of Income Tax (Appeals) sustaining the addition of Rs.2,52,79,048 as unexplained cash deposits under section 69A of the Income Tax Act, 1961. The society, which regularly collects cash from its members through agents, did not initially file its Return of Income for the assessment year 2016-17. Upon investigation, substantial cash deposits were found in its bank accounts, leading to proceedings under section 147 of the Act. The Assessing Officer added the entire amount of cash deposits to the income of the society, which was upheld by the CIT(A). The Tribunal found that the CIT(A) had not adequately addressed the evidentiary value of the documents provided by the society and noted a discrepancy in the treatment of similar cases in different assessment years. Consequently, the Tribunal directed a re-examination of the documents and a fresh assessment by the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126146 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: GVN HARI
• Keywords: Set aside; Opportunity of being heard

Judgement Text

" आआआआ आआआआआआ आआआआआआ, आआआआआआआआ आआआ IN THE INCOME TAX APPELLATE TRIBUNAL Visakhapatnam Bench, Visakhapatnam (Through Virtual Hearing) BEFORE SHRI RAVISH SOOD, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आ.अपी.सं /ITA No.155/Viz/2024 (निर्धारण वर्ा/Assessment Year:2016-17) Sri Gouri Parameswari Co- operative Thrift Society Limited, Yellamanchili. PAN:AAKAS0359M Vs. Income Tax Officer, Ward-2(5), Visakhapatnam. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri GVN Hari, Advocate. रधजस् व द्वधरध/Revenue by:: Dr. Aparna Villuri, SR-DR सुिवधई की तधरीख/Date of hearing: 24/03/2025 घोर्णध की तधरीख/Pronouncement: 22/04/2025 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M.: This appeal is filed by Sri Gouri Parameswari Co-operative Thrift Society Limited (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), dated 15.02.2024 for the A.Y. 2016-17. 2. The assessee has raised the following grounds : “1. The order of the Ld. CIT(A) is contrary to the facts and also the law applicable to the facts of the case. ITA No.155/Viz/2024 2 2. The Ld. CIT(A) is not justified in sustaining the addition of Rs.2,52,79,048/- made by the Assessing Officer u/s.69A of the Act towards unexplained ;cash deposits in the bank accounts of appellant. 3. Any other ground that may be urged at the time of appeal hearing.” 3. The brief facts of the case as culled out from the record are that, the assessee is a co-operative society, did not file its Return of Income (“ROI”) u/s.139 of the Income Tax Act, 1961 (“the Act”) for the A.Y. 2016-17. From the available information, the Learned Assessing Officer (“Ld. AO”) found that there were substantial cash deposits in the bank accounts of the assessee, therefore, the Ld. AO initiated proceedings u/s.147 of the Act. In response to notice u/s.148 of the Act, the assessee filed ROI on 12.11.2021 declaring total income at Rs.2,35,590/-. During the assessment proceedings, the Ld. AO found that the assessee had deposited cash of Rs.2,52,79,048/- in its various bank accounts. Being not satisfied with the submission of the assessee, the Ld. AO added the entire cash deposit of Rs.2,52,79,048/- in the hands of the assessee and completed the assessment u/s.147 r.w.s. 144B of the Act on 25.03.2022. 4. Aggrieved with the order of Ld. AO, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) upheld the addition made by the Ld. AO, stating that the assessee did not furnish sufficient evidences. ITA No.155/Viz/2024 3 5. Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before us. The Ld. AR submitted that, the assessee is a co-operative society and regularly collect cash from its members through its agents and deposit the same in its bank account. The Ld. AR invited our attention to the details of daily collection made through its agents placed at page nos.70 to 77 of the paper book and submitted that the assessee had filed the same before the Ld. AO containing the details of daily collection of cash through agents and the date-wise deposit of the collection into its bank account. The Ld. AR further invited our attention to daily collections of cash through agents placed at page nos.78 to 163 of the paper book and submitted that these documents could not be filed before the Ld. AO but were filed before the Ld. CIT(A). These documents contained the details of name of the agent, the date of collection, the amount of collection, member from which collection has been made and the receipt number. Inspite of all the details filed before the Ld. CIT(A), the Ld. CIT(A) confirmed the additions stating that the assessee did not furnish sufficient evidences. The Ld. AR submitted that the Ld. CIT(A) neither discussed about the evidentiary value of these documents nor identified any deficiency in the documents in his order before dismissing the appeal. The Ld. AR further submitted that, under the similar circumstances for A.Y. 2018-19, the Ld. AO had accepted the explanation of the assessee and did not make any ITA No.155/Viz/2024 4 addition in respect of cash deposit. Accordingly, the Ld. AR argued that the revenue cannot take biometrically opposite stand for different year without a material change in facts. Finally, the Ld. AR submitted that the Ld. CIT(A) has passed the order without properly appreciating the documents filed. As some documents could not be filed before the Ld. AO, therefore, the Ld. AR prayed before the bench to set aside the issue to the file of Ld. AO for proper verification of the documents. 6. Per contra, the Learned Department Representative (“Ld. DR”) supported the orders of revenue authority and submitted that the assessee was given sufficient opportunity and the assessee failed to establish genuineness of the cash deposit with concrete and verifiable evidence. Accordingly, the Ld. DR prayed before the bench to dismiss the appeal of the assessee. 7. We have heard the rival contentions and also gone through the record in the light of the submissions made by either side. There is no dispute about the facts that the assessee has deposited cash of Rs.2,52,79,048/- in its bank accounts during the year under consideration. The assessee claims that the cash has been collected from its members through its agents. We have gone through the documents placed at page nos.78 to 163 of the paper book and found that the documents contained the name of the agent, the name of the ITA No.155/Viz/2024 5 member from whom the contribution has been collected, the amount collected and the date of collection. Further, we found that the Ld. CIT(A) has not addressed or discussed the evidentiary value of these documents in his order. There is no finding by the revenue authority on the authenticity or completeness of the documents placed at page nos.78 to 163 of the paper book. Therefore, we are of the view that a fresh verification is required in this case. 7.1 Further more, we have gone through the order for A.Y. 2018-19 passed u/s.147 r.w.s. 144B of the Act on 30.01.2024, wherein the Ld. AO has treated the cash deposit of Rs.2,83,02,260/- as explained credit transactions and did not make any addition in the hands of the assessee. Therefore, in the interest of justice, we are of the view that, the matter requires re-examination by Ld. AO. Accordingly, we set aside the order of Ld. CIT(A) and restore the issue to the file of Ld. AO with a direction to verify the documents already submitted and any further evidence the assessee may file in support of the cash deposit. The Ld. AO shall pass a fresh order in accordance with law after granting due opportunity of being heard to the assessee. ITA No.155/Viz/2024 6 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 22nd April, 2025. Sd/- Sd/- (RAVISH SOOD) (MADHUSUDAN SAWDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad. Dated: 22.04.2025. * Reddy gp Copy of the Order forwarded to : 1. Sri Gouri Parameswari Co-operative Thrift Society Limited, Dimili Road, Yellamanchili- 530 016 Andhra Pradesh. 2. ITO, Ward 2(5), Visakhapatnam. 3. Pr.CIT, Visakhapatnam. 4. DR, ITAT, Hyderabad/Visakhapatnam. 5. Guard file. BY ORDER, "