THE KOTTARAKKARA TALUK HOUSING COOPERATIVE SOCIETY LIMITED,KOTTARAKARA V. ITO, WARD 2, KOLLAM

ITA 120/COCH/2025

AI Insights

The case involves The Kottarakkara Taluk Housing Cooperative Society Ltd, which appealed against an order from the National Faceless Appeal Centre (CIT(A)) concerning the assessment year 2017-18. The primary issue arose from allegations that the society deposited unexplained cash during the demonetization period, amounting to Rs.6,31,71,773. The Assessing Officer made additions under section 68 of the Income Tax Act, citing unexplained cash credits, after the society failed to provide satisfactory details of these transactions. The CIT(A) partly allowed the appeal without a detailed examination of the merits, leading to the society's further appeal to the Income Tax Appellate Tribunal. The Tribunal found that the Assessing Officer had not adequately considered the submitted details and granted the society another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633611 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL; SNR
• Assessee Lawyers: KOSHY T Y
• Keywords: Unexplained cash credit
• Section: 147; 148; 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member & Shri Sonjoy Sarma, Judicial Member ITA No.120/Coch/2025 Assessment Years: 2017-18 The Kottarakkara Taluk Housing Cooperative Society Ltd. Kottarakara Kollam, Kerala – 691506. PAN : AADAT7613G. v. The Income Tax Officer Ward-2, Kollam. (Appellant) (Respondent) Appellant by : Shri Koshy T Y, CA Respondent by : Smt. Leena Lal, Snr AR. Date of Hearing : 02.06.2025 Date of Pronouncement : 10.06.2025 O R D E R Per Sonjoy Sarma: The present appeal has been preferred by the assessee against an order dated 22.07.2024 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. Brief facts of the case are that the assessee is a rural housing co-operative society under Kerala State Co-operative Department. The assessee filed its return of income for the assessment year 2017-18 in compliance to notice u/s 148 of the Act. Later on, notice u/s 143(2) of the Act was issued calling for bank statements from various banks as the assessee allegedly deposited cash during demonetization period from 09.11.2016 to 31.12.2016 of ITA No.120/Coch/2025 The Kottarakkara Taluk Housing Cooperative Society Ltd 2 Rs.6,31,71,773/- and the assessee could not furnish the details as sought for. Accordingly, the Assessing Officer in the absence of details of ledger completed the assessment by passing an order u/s 147 of the Act by making an addition u/s 68 of the Act as unexplained cash credits. 4. Aggrieved by the above order, the assessee preferred an appeal before the ld. CIT(A), however, the appeal of the assessee was partly allowed without looking into the various details or merits of the case. 5. Dissatisfied with the above order, the assessee come in appeal before us. The ld. counsel has submitted that the alleged cash deposits in bank accounts were out of their daily transactions only. The ld. counsel further submitted that the assessee is a co- operative society and is working for its members wherein collections from members towards GDC, Recurring Deposit and Saving Bank Deposits were deposited in various bank accounts after meeting the daily expenses and other payments and the details of day book of the society during demonetization period was provided to the lower authorities and also the name of the members from whom the collections were made was already reflected in the day book which was submitted. The ld. AR submitted that the Assessing Officer did not consider the day book of the society and the name and address of its members from whom the deposits are accepted. The ld. AR again submitted that there were no unexplained cash deposits in the bank account of the appellant. The ld. AR prayed for one more opportunity may be given to produce the bank statements and ledger details before the Assessing Officer to prove the case of the assessee. ITA No.120/Coch/2025 The Kottarakkara Taluk Housing Cooperative Society Ltd 3 6. On the other hand, the ld. DR did not object to the above prayer made by the ld. AR. 7. We, after hearing the submission of both the parties and perusing the materials available on record, find that the Assessing Officer made the alleged addition u/s 68 of the Act without properly considering the details or documents submitted by the assessee and the assessee did not get proper opportunity before the lower authorities. Therefore, in the interests of justice and fair play, we deem it necessary to remand back the whole issue to the file of the Assessing Officer with a direction to re-examine the issue afresh after considering all details or documents which will be submitted by the assessee during the remand proceedings and to pass a speaking order in accordance with law. 8. In terms of the above, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 10.06.2025. Sd/- (Inturi Rama Rao) Sd/- (Sonjoy Sarma) Accountant Member Judicial Member Cochin, Dated: 10.06.2025. RS Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(A), Concerned. 4. The CIT Concerned. 5. The DR, ITAT, Cochin. 6. Guard File. Asst. Registrar/ITAT, Cochin "