TYSPL 82 SRIPURANTHAN PRIMARY AGRICULTURAL COOPERAIVE CREDIT SOCIETY LTD,ARIYALUR V. COMMISSIONER OF INCOME-TAX (APPEALS), CHENNAI

ITA 2761/CHNY/2024

AI Insights

The case involves TYSPL 82 Sripuranthan Primary Agricultural Cooperative Credit Society Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was directed against the addition of \\u20b96,22,32,360 made by the Assessing Officer as unexplained cash deposits under section 69A of the Income Tax Act, 1961, for the assessment year 2019-20. The assessee had deposited a substantial amount in cash and failed to explain the source of these deposits, leading to the initial addition to their income. The Tribunal noted that the assessee had not provided complete details despite several opportunities and decided to remand the case for a fresh assessment after allowing the assessee to submit the required documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107562 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R. CLEMENT RAMESH KUMAR
• Assessee Lawyers: G.REDDI PRAKASH
• Section: 148; 69A

Judgement Text

"आयकर अपीलीय अिधकरण, ’सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी अिमताभ शुƑा, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Amitabh Shukla, Accountant Member आयकर अपील सं./I.T.A. No.2761/Chny/2024 िनधाŊरण वषŊ/Assessment Year: 2019-20 TYSPL 82 Sripuranthan Primary Agricultural Cooperative Credit Society Ltd., Sripuranthan, Udaiyarpalayam Tk., Ariyalur 621 701. [PAN:AACAT5528P] Vs. The Income Tax Officer, Ward 1, Perambalur. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri G. Reddi Prakash, CA ŮȑथŎ की ओर से/Respondent by : Shri R. Clement Ramesh Kumar, CIT सुनवाई की तारीख/ Date of hearing : 22.01.2025 घोषणा की तारीख /Date of Pronouncement : 23.01.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 29.08.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2019-20. 2. The only effective ground raised by the assessee is relating to confirmation of addition of ₹.6,22,32,360/- made by the Assessing Officer towards unexplained cash deposits under section 69A of the Act. I.T.A. No.2761/Chny/24 2 3. Brief facts of the case are that the assessee is a Primary Agricultural Cooperative Credit Society and during the assessment year 2019-20, the assessee made cash deposit amounting to ₹.6,22,32,360/- and earned an interest income of ₹.2,22,934/- against which, the Assessing Officer issued notice under section 148 of the Income Tax Act, 1961 [“Act” in short] requiring the assessee to file its return of income. Accordingly, the assessee filed its return of income on 19.04.2023 declaring total taxable income at ₹.NIL after claiming deduction under Chapter VIA of ₹.6,70,867/-. The Assessing Officer noted that the assessee made cash deposit in various bank accounts of ₹.6,22,32,360/- in the Trichirapalli Dist. Central Coop. Bank Ltd. and since the source of cash deposited remained unexplained by the assessee, the Assessing Officer added the entire deposit to the total income of the assessee as unexplained money under section 69A of the Act. Since the assessee did not offer the interest income of ₹.2,22,934/- for taxation, the same is added to the total income of the assessee under the head income from other sources. Since the assessee did not furnish various details sought by the ld. CIT(A) through his notice dated 24.07.2024 & 05.08.2024, the ld. CIT(A) confirmed the additions made by the Assessing Officer. I.T.A. No.2761/Chny/24 3 4. The ld. AR Shri G. Reddi Prakash, C.A. submits that due to the circumstances beyond its control, the assessee could not file the details as sought by the ld. CIT(A). He placed on record copies of bunches of statement of account as well as Day Book and prayed that the assessee may be given one more opportunity for furnishing the same before the ld. CIT(A) in support of its claim. 5. The ld. DR Shri R. Clement Ramesh Kumar, CIT submits that despite various opportunities afforded, the assessee did not file complete details before the Assessing Officer as well as the ld. CIT(A). 6. Heard both the parties and perused the material available on record. We note that the assessee made cash deposit of ₹.6,22,32,360/- and the Assessing Officer asked the assessee asked to explain the source of cash deposit. The relevant portion of reply of the assessee is reproduced at para 5.1.2 at page 10 of the impugned order. During the course of appellate proceedings, the assessee filed its written submissions before the ld. CIT(A) and the same is reproduced in para 5.1.6 at page 12 to 14 of the impugned order. To verify the correctness of the claim, the ld. CIT(A) asked the assessee to submit certified copy of registration, list of members and copy of cash book for FY 2018-19. Since the assessee did not file the above details, the ld. CIT(A) confirmed the I.T.A. No.2761/Chny/24 4 addition made by the Assessing Officer. Before us, the ld. AR filed copies of bunches of statement of account as well as Day Book and prayed that the assessee may be given one more opportunity for furnishing the same before the ld. CIT(A) in support of its claim. Taking into consideration of the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to remand the matter to the file of the ld. CIT(A) to verify the details as may be filed by the assessee and decide the matter afresh in accordance with law. The assessee is also directed to furnish complete details before the ld. CIT(A). Thus, grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 23rd January, 2025 at Chennai. Sd/- Sd/- (AMITABH SHUKLA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 23.01.2025 Vm/- I.T.A. No.2761/Chny/24 5 आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "