TYSPL 88 ILUPPAIYUR PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD ,ARIYALUR V. COMMISSIONER OF INCOME TAX APPEAL, CHENNAI

ITA 874/CHNY/2025

AI Insights

The case involves TYSPL 88 Iluppaiyur Primary Agricultural Cooperative Credit Society Ltd., which appealed against the order of the Learned Commissioner of Income Tax (NFAC), Delhi, concerning an assessment made by the Assessing Officer under sections 147 and 144B of the Income-tax Act, 1961. The assessment was reopened due to unaccounted cash deposits of Rs.2,38,88,559 in the society's bank account, for which no return of income was filed. The Assessing Officer added this amount to the income of the assessee, citing lack of details regarding the source of the deposits. The CIT(A) upheld this addition, leading to the appeal before the Tribunal. The Tribunal noted the assessee's claim that these deposits were repayments of loans by its members, a point not adequately considered by the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653003 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: G.REDDI PRAKASH; C.A
• Section: 147

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.874/Chny/2025 िनधा:रण वष: /Assessment Year: 2019-20 TYSPL 88 Iluppaiyur Primary Agricultural Cooperative Credit Society Ltd., Poyyatha Nallur, Ariyalur – 621 718. [PAN AACAT 7506R] Vs. The Income Tax Officer, Ward-1, Perambalur. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri G. Reddi Prakash, C.A IJथ की ओर से /Respondent by : Shri Shiva Srinivas, CIT सुनवाई की तारीख/Date of Hearing : 12.06.2025 घोषणा की तारीख /Date of Pronouncement : 17.06.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2019-20 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 05.02.2025 in the matter of assessment framed by the Assessing Officer [AO] u/s. 147 r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) on 16.02.2024. ITA No.874/Chny/2025 :- 2 -: 2. The assessee is a primary agricultural cooperative credit society and has not filed its return of income for the relevant assessment year. The A.O reopened the assessment for the reason that the assessee had made a cash deposit of Rs.2,38,88,559/- and has not filled the return. The A.O in assessment order passed u/s. 147 r.w.s 144B of the Act, has made the addition of Rs.2,38,88,559/- as the assessee has not furnished any details regarding the source of the cash deposits made into its bank account. On appeal, the Ld. CIT(A) dismissed the appeal on the ground that the assessee failed to file any documentary evidence to substantiate the nature and source of the said cash deposits. 3. Before us, the Ld. Authorized Representative (A.R) of the assessee has submitted that the assessee is a cooperative primary agriculture cooperative credit society and the main business of the society is to lend loan to its members. The Ld AR submitted that the cash deposits are the loan repayment by the members of the society through the cash made along with interest and principles. Further, the Ld. AR has submitted that the Ld. CIT(A) has issued only one notice and has decided the matter without providing proper opportunity and ITA No.874/Chny/2025 :- 3 -: requested for one more opportunity to explain the source of cash deposits. 4. The Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. The assessee is a primary agricultural cooperative credit society and addition of cash deposit has been made by the A.O as assessee has not explained the source. The assessee has explained that these cash deposits are repayments of loan by members. The Ld. A.R has submitted that the Ld. CIT(A) has decided the matter without affording them proper opportunity to present their case. We find merit in the submission of Ld AR, therefore remit the matter back to the file of the A.O for fresh adjudication after providing a reasonable opportunity to the assessee to present its case. The assessee is also directed to appear before the A.O on the date of hearing without fail and furnish complete details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. ITA No.874/Chny/2025 :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 17th day of June, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 17th June, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Madurai 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "