THE BALLANA PRIMARY AGRICULTURE COOP. SOCIETY LIMITED,AMBALA V. ITO, WARD-5, AMBALA

ITA 713/CHANDI/2023

AI Insights

The case involves The Ballana Primary Agriculture Co-operative Society Ltd., which appealed against the order of the CIT(A) for the assessment year 2017-18. The primary grievances were the denial of exemption under Section 80P and the confirmation of an addition of Rs. 45,96,000 under Section 68 of the Income Tax Act, attributed to unexplained deposits during demonetization. The Tribunal noted that the assessee had not been granted a fair opportunity to present its case, particularly regarding the timing of the deposits relative to the RBI's prohibition on accepting deposits post-demonetization. The Tribunal's decision to remand the case to the AO allows for a re-examination of the circumstances under which the deposits were made and the applicability of the cited RBI notification.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469850 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2017-2018
• Other Referred Cases: ITAT Pune, ITAT Ahmedabad, ITAT Bangalore
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: HARSHIT CHAWLA
• Keywords: Set aside; Additional evidence
• Section: 68

Judgement Text

"आयकर अपील य अ\u000bधकरण,च\u0010डीगढ़ \u0014यायपीठ, च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGRH BENCH, ‘SMC’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT आयकर अपील सं./ ITA No. 713/CHD/2023 \rनधा\u0011रण वष\u0011 / Assessment Year: 2017-18 The Ballana Primary Agriculture Co-operative Society Ltd., Ballana, Ambala, Haryana. Vs The ITO, Ward – 5, Ambala. \u0016थायी लेखा सं./PAN NO: AABAT8394C अपीलाथ\u001a/Appellant \u001b\u001cयथ\u001a/Respondent Assessee by : Shri Harshit Chawla, Advocate and Shri Vagish Sharma, CA Revenue by : Smt. Ranjit Kaur, Addl. CIT Date of Hearing : 28.01.2025 Date of Pronouncement : 28.01.2025 PHYSICAL HEARING O R D E R The assessee is in appeal before the Tribunal against the order of Ld. CIT(A) dated 06.09.2023 passed for assessment year 2017-18. 2. The assessee has taken three grounds of appeal out of which ground No. 3 is a general ground which does not call for recording of any specific finding. In Ground No.1, grievance of the assessee is that exemption under Section 80P has not been granted to the assessee. In Ground No.2, ITA No.713/CHD/2023 A.Y.2017-18 2 grievance of the assessee is that ld. CIT(A) has erred in confirming the addition of Rs.45,96,000/- which was added by the AO with the aid of Section 68 of the Income Tax Act. The assessee is a primary agriculture Co-operative Society. It has taken deposits from its members during demonetization and deposited that money in specific bank accounts. A perusal of the record would reveal that on 11.11.2016, Rs.24,39,500/- were deposited in the bank, on 12th and 13th the assessee had deposited Rs.19,28,500/- and Rs.2,28,000/- respectively. In this way, a total deposit of Rs.45,96,000/- was made. The AO sought explanation of this deposit. It appears that assessee could not file necessary material before the AO. Thus, AO has made an addition under Section 68 of the Income Tax Act. 3. Appeal to the CIT(A) did not bring any relief to the assessee. 4. Before the Tribunal, assessee sought permission to file a Paper Book containing 532 pages. The assessee wants to place on record copy of the RBI Notification bearing No. RBI/16-17/130 dated 14.11.2016 whereby assessee was ITA No.713/CHD/2023 A.Y.2017-18 3 prohibited to receive any deposit from its members. In brief, the case of the assessee is that all monies were taken by it before this appointed date and a complete ledger account alongwith cash book were maintained by the assessee which due to some unavoidable reasons, could not be submitted before the lower authorities. It is an additional evidence before the Tribunal, it appears that some of the papers were filed before ld. CIT(A) but it is not discernable whether any permission was sought under Rule 46A or not or CIT(A) has called for these documents according to his powers contemplated upon him under sub-rule 4 of Rule 46A. 5. Considering nature of the activities of the assessee, I deem it appropriate to set aside both the impugned orders and relegate this issue to the file of ld. AO for fresh adjudication. The assessee will be at liberty to file the Paper Book sought to be filed before the Tribunal, before AO. The AO will first decide whether assessee was competent to receive all currency notes after 08.11.2016 upto 14.11.2016 from its members. The ld. AO will take into consideration the judgement of ITAT Pune, Ahmedabad, Bangalore etc. ITA No.713/CHD/2023 A.Y.2017-18 4 which are being placed in this Paper Book. In other words, the observation made by me will not impair or injure the case of the AO and will not cause any prejudice to the defence/explanation of the assessee. The AO shall entertain the fresh evidence if submitted by the assessee and decide the issue in accordance with law. 6. In result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 28.01.2025. Sd/- (RAJPAL YADAV) VICE PRESIDENT “Poonam” आदेश क\u0002 \u0003ितिलिप अ\tेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड\u001c फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "