THE SUPREME CO-OPERATIVE (URBAN) THRIFT AND CREDIT SOCIETY LIMITED,DELHI V. ITO, WARD- 59(6), DELHI

ITA 3210/DEL/2025

AI Insights

The case involves The Supreme Co-operative (Urban) Thrift and Credit Society Ltd., which appealed against the order of the National Faceless Appeal Centre (NFAC) that upheld the addition of Rs. 71,43,857 as unexplained cash credit for the Assessment Year 2017-18. The addition was initially made by the Income Tax Officer (ITO) based on substantial cash deposits during the demonetization period. The Tribunal noted that the assessee had declared NIL income and claimed a deduction under section 80P. The Tribunal criticized the ITO for not investigating the sources of the cash deposits further despite the assessee providing details of the members and their PANs.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790148 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 14-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: AMIT GOEL; PRANAV YADAV
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

"P a g e | 1 ITA No.3210/Del/2025 The Supreme Co-operative (Urban) Thrift and Credit Society Ltd. (2017-18) IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER ITA No. 3210/Del/2025 (Assessment Year: 2017-18) The Supreme Co- operative (Urban) Thrift and Credit Society Ltd. Office No.4, First Floor, CSC, Pocket-I, Dilshad Garden Delhi - 110095 Vs. ITO, Ward 59(6) Vikas Bhawan Delhi – 110002 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AACAT8337Q Appellant .. Respondent Appellant by : Sh. Amit Goel, CA & Sh. Pranav Yadav, Adv. Respondent by : Sh. Om Prakash, Sr. DR Date of Hearing 20.11.2025 Date of Pronouncement 28.11.2025 O R D E R PER ANUBHAV SHARMA, JM: This appeal is preferred by the assessee against the order dated 24.03.2025 of the National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No.ITBA/NFAC/S/250/2024-25/1074954965(1) arising Printed from counselvise.com P a g e | 2 ITA No.3210/Del/2025 The Supreme Co-operative (Urban) Thrift and Credit Society Ltd. (2017-18) out of the appeal before it against the order dated 29.12.2019 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, Ward 59(1) Delhi (hereinafter referred to as the Ld. AO) for Assessment Year 2017-18. 2. Heard and perused the records. The relevant facts are that the assessee filed its return of income for the A.Y.2017-18 on 27.10.2017 declaring NIL income and claimed deduction u/s 80P of Rs.5,45,853/-. The case was selected for scrutiny under CASS. As per ITS data for F.Y.2016-17 and the details filed by the assessee in the ROI, the assessee had made cash deposits of Rs.98,48,830/- in its accounts during demonetization period i.e. from 09.11.2016 to 30.12.2016. The submissions of the assessee did not find favour with the AO. Therefore, the source of the cash deposited by the assessee was accepted as out of cash in hand as on 08-11-2016 for Rs. 26,89,143/- and the balance amount of Rs. 71,43,857/- was treated as unexplained cash credit as per provisions of section 68 of the Act. Subject to the above, the AO completed the assessment vide an order u/s. 143(3) dated 29.12.2019, making an addition of Rs.71,43,857/- as unexplained cash credit u/s.68 of the Act, to the total income of the assessee. Printed from counselvise.com P a g e | 3 ITA No.3210/Del/2025 The Supreme Co-operative (Urban) Thrift and Credit Society Ltd. (2017-18) 3. Though ld. DR defends the impugned orders, it comes up that assessee claims that the cash was received from the members during the demonetization and details of these members specially the PAN was provided. However, without there being any enquiry from the members the ld. AO has gone to make addition. Now what is material is that financials of assessee have been accepted. There is no discrepancy found in the details of members. Further CBDT Instruction No. 3/2017 dated February 21, 2017 discouraged additions where cash is shown to be received from identifiable persons by way of giving PAN. Thus it was only in cases where PAN was not provided the ld. AO could have even gone further with enquiry. 4. Thus given the nature of receipts and details given by the assessee, we are of considered view the additions and consequential disallowance u/s 80 P of the Act were not justified. The grounds are sustained. The appeal is allowed. 5. The appeal of the assessee is allowed. Order pronounced in the open court on 28.11.2025 Sd/- (Krinwant Sahay) Sd/- (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Printed from counselvise.com P a g e | 4 ITA No.3210/Del/2025 The Supreme Co-operative (Urban) Thrift and Credit Society Ltd. (2017-18) Dated 28.11.2025 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "