2023 (8) TMI 1274

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....ds of appeal:- "1. The learned CIT(A) erred in confirming the order of the Assessing Officer which is opposed to law and facts of the case. 2. The learned CIT(A) erred in confirming the order of Assessing Officer treating Rs 67,31,239/- cash received after demonetization as unexplained u/s 68 of the Income Tax Act 1961, even when cash receipts were explained and recorded in books of accounts. We draw support in the ITAT Cases decided (i) Bhageeratha Pattina Sahahkara Sangh Niyamit Vs ITO ITA 646/Bang/2021 TS-5362 ITAT 2022 (Bang) (ii) Prathamik Krushi Pattina Sahakari Sangh Niyamitha Vs ITO ITA 593/Bang/2021 3. The learned CIT(A) erred in confirming Assessing Officer action of treating cash recei....

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....eing cash received from members and it was deposited into the bank. As per Central Govt. Notification No.2562 dated 08.11.2016, the assessee was not eligible for accepting cash in old currency (SBNs). Accordingly SBNs deposited by the assessee after 08.11.2016 becomes unexplained in the hands of the assessee as there was no value to the SBNs collected by the assessee. The assessee submitted the list of depositors, loanees with account Nos., specifying the SBNs and hence submitted it was not unexplained money. The AO noted that as per RBI letter dated 08.11.2016 & Govt. of India Gazette Notification dated 08.11.2016 the assessee was not designated/authorized by the RBI to collect such SBNs. Accordingly, the AO added it u/s. 68 and taxed it a....

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....h Niyamit Vs ITO ITA 646/Bang/2021 TS-5362 ITAT 2022 (Bang) (ii) Prathamik Krushi Pattina Sahakari Sangh Niyamitha Vs ITO ITA 593/Bang/2021 6. The ld. DR strongly relied on the orders of lower authorities and strongly submitted that the assessee was not authorized to collect the SBNs in the demonetisation period. Therefore, both the authorities were justified in making addition and applying special rate of taxes. The CIT(Appeals) has dismissed the appeal of the assessee on the basis of RBI Notification dated 08.11.2016 and also Govt. of India Gazette Notification dated 8.11.2016. 7. We have considered the rival submissions. The assessee is a credit co-operative society dealing with the members only. During the demonetisation ....