THE AMALORPARVAM HIGHER SEC, SCHOOL STAFF CO-OP. CREDIT SOCIETY LTD.,PONDICHERRY V. ITO, WARD-1, PUDUCHERRY

ITA 2083/CHNY/2025

AI Insights

The case involves the Amalorpavam Higher Sec. School Staff Co-op. Credit Society Ltd, which did not file its income tax return for the assessment year 2016-17. The Income Tax Department noted a substantial cash deposit of Rs.91,07,025 in the society's bank account, which remained unexplained due to the non-filing of the return. Consequently, the Assessing Officer reopened the case and added the amount as unexplained income under section 69A of the Income Tax Act. The society appealed this decision, but the Commissioner of Income Tax (Appeals) upheld the addition due to insufficient explanation of the bank deposits. The Tribunal, after hearing both parties, decided to set aside the CIT(A)'s order and remand the case back to the Assessing Officer for a fresh assessment, providing the society another opportunity to explain the deposits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 793022 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2016-2017
• Appeal Filed On: 29-07-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: T.VASUDEVAN
• Keywords: Set aside

Judgement Text

" आयकर अपील य अ धकरण, ‘सी’ \u000eयायपीठ, चे\u000eनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI \u0015ी मनु क ुमार ग\u0019र, \u000eया\u001aयक सद य एवं \u0015ी एस. आर. रघुनाथा, लेखा सद य क े सम# BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2083/Chny/2025 \u001aनधा$रण वष$ / Assessment Year: 2016-17 The Amalorpavam Higher Sec. School Staff Co-op. Credit Society Ltd, No.1, Lourdes Campus, Vanarpet, Puducherry – 605 001. vs. ITO Ward -1, Pondicherry. [PAN: AAEAT-5199-E] (अपीलाथ&/Appellant) ('(यथ&/Respondent) अपीलाथ& क) ओर से/Appellant by : Mr. T. Vasudevan, Advocate '(यथ& क) ओर से/Respondent by : Ms. R. Anitha, Addl. CIT सुनवाई क) तार ख/Date of Hearing : 17.09.2025 घोषणा क) तार ख/Date of Pronouncement : 22.09.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER: This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2016-17, vide order dated 16.05.2025. Printed from counselvise.com :-2-: ITA. No:2083/Chny/2025 2. Brief facts of the case are that the assessee is Co-operative Society engaged in welfare of employees of Amalorpavam Higher Secondary School and had not filed its return of income for the A.Y 2016- 17. As per the information available with the department, the assessee has deposited cash of Rs.91,07,025/- in the Pondicherry State Co-op Bank Ltd. Since the assessee had not filed the return of income for the year under consideration, therefore the above mentioned transactions remained unexplained. Hence, the notice u/s.148 was issued and the case has been re-opened u/s.147 of the Act. Since, the assessee did not participate in the assessment proceedings by not responding to the statutory notices, the AO made an addition of Rs.91,07,025/- as unexplained income u/s.69A of the Act, based on the material evidence available on records by passing an order u/s.147 r.w.s.144B of the Act dated 05.03.2024. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), NFAC on 01.05.2024. 4. At the outset, the ld.AR drew our attention to para 7.3 in Page No.11 of the order of the ld.CIT(A) and submitted that the assessee had provided the receipts and payment account statement during the appellate proceedings. Inspite of that the ld.CIT(A) has confirmed the addition made by the AO stating that the details of bank deposits has neither been explained satisfactory nor such money offered for taxation. The ld.AR Printed from counselvise.com :-3-: ITA. No:2083/Chny/2025 submitted that the assessee is ready to furnish entire details since the books of accounts of the society has already been audited by the state co- operative department. In view of the above, the ld.AR prayed for one more opportunity before the AO, since the exparte order has been passed by the AO. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the AO to complete the assessment proceedings effectively. 5. Per contra, the ld.DR submitted that both the Assessing Officer and the ld.CIT(A) provided sufficient opportunity to appear before them. However, the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(A). 6. We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed an exparte order by considering the information available with the department and the same has been dismissed by the ld.CIT(A) - NFAC due to non-participation of the assessee before the first appellate authority. 7. In view of the above and to meet the ends of justice we set aside the order of ld.CIT(A) and remit the matter back to the file of AO and direct the AO to denovo frame the assessment order in accordance with law, after providing reasonable opportunity to the assessee. Needless to say, the Printed from counselvise.com :-4-: ITA. No:2083/Chny/2025 assessee to be diligent and file written submissions and relevant documents if advised so. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 22nd September, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार ग\u0019र) (MANU KUMAR GIRI) \u000eया\u001aयक सद य/Judicial Member (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखासद य/Accountant Member चे\u000eनई/Chennai, -दनांक/Dated, the 22nd September, 2025 SP आदेश क) '\u001aत/ल0प अ1े0षत/Copy to: 1. अपीलाथ&/Appellant 2. '(यथ&/Respondent 3.आयकर आयु2त/CIT– Chennai/Coimbatore/Madurai/Salem 4. 0वभागीय '\u001aत\u001aन ध/DR 5. गाड$ फाईल/GF Printed from counselvise.com "