2014 (10) TMI 1004

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....circumstances of the case, Ld. CIT(A) has erred in deleting the addition of Rs. 3,00,63,000/- made on account of unexplained cash credits u/s 68 of the I.T. Act, 1961 without considering the fact that the identity of creditors, capacity of creditors to advance the money and genuineness of transaction were not proved during the assessment proceedings. 2. On the facts and in the circumstances of the case, Ld. CIT(A) was not justified in ignoring the fact that books of accounts being incorrect, incomplete and unreliable were correctly rejected and therefore deduction u/s 80P(2)(i) of the I.T. Act, 1961 was not allowable in the case." 2. The facts of the case are brought out in para No. 2 of the assessment order which is extracted f....

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....ned income u/s 68 of the I.T. Act and being added to the total income of the assessee." 4. On appeal the first appellate authority deleted the addition. 5. Aggrieved the revenue is in appeal. 6. We have heard Shri J.P. Chandraker, Departmental Representative on behalf of the revenue and Shri Ved Jain and Smt. Rano Jain on behalf of the assessee. 7. On a careful consideration of the facts and circumstances of the case and a perusal of the papers on record and the orders of the authorities below we hold as follows :- The undisputed fact is that the assessee is a thrift & credit cooperative society, registered with Registrar of Co-operative Society, New Delhi since 1991. It is governed & regulated as per the Delhi Co-operative S....

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.... at page 62 and 63 of his order observed as follows :- "To sum up it is an admitted fact that the assessee Society is thrift and credit co-operative society, registered with Registrar of Co-operative Society, New Delhi. The society is engaged in the business of lending and taking deposits only to/from its members. The society collects the money from members in cash/cheque mainly against the repayment of loans, interest on loan, fixed deposit, admission fee, share capital, etc. and they deposit the same in bank accounts. I am of the opinion that since the society is a thrift & credit co-operative society, therefore source of cash deposited in the bank of Rs. 3,00,63,224/- out of the cash receipt received from its members against the....