Tribunal Overturns NFAC Order, Sets Aside Rs. 1,78,500 Addition u/s 68 of Income-tax Act, 1961.

The Tribunal allowed the appeal, overturning the NFAC's order and setting aside the Rs. 1,78,500/- addition made by the Assessing Officer under section 68 of the Income-tax Act, 1961. The Tribunal found the transactions genuine and noted the absence of contrary precedents favoring the Revenue on similar facts.

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Issues Involved:
The appeal arises from the order of the National Faceless Appeal Centre (NFAC) u/s. 250 of the Income-tax Act, 1961 for the assessment year 2017-18. The main issue is the addition of Rs. 1,78,500/- made by the Assessing Officer u/s. 68 of the Act.

Confirmation of Addition u/s. 68:
The case involved a Cooperative Credit Society that declared total income of Rs. 27,520/-. During scrutiny, it was found that the society deposited large sums during demonetization. The deposits totaling Rs. 1,78,500/- were explained to have been received from 15 members in old currency and deposited in the bank account. Despite providing details of the depositors and offering to present them, the Assessing Officer made the addition u/s. 68 of the Act. The Tribunal, after considering the details provided by the society and citing a precedent where a similar addition was deleted, overturned the impugned order and directed the deletion of the addition of Rs. 1,78,500/-.

Conclusion:
The Tribunal allowed the appeal, setting aside the addition of Rs. 1,78,500/- made by the Assessing Officer u/s. 68 of the Income-tax Act, 1961. The decision was based on the genuineness of the transactions and the lack of contrary orders favoring the Revenue on similar facts.

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