AI Drafter 
TaxTMI 
TaxTMI 
2023 (10) TMI 698
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.... period expired on 31.12.2019. 2. Ld. CIT(A). NFAC, has erred in law and on facts to confirm AO's addition u/s 69A of the Act for Rs. 41,31,910/- ignoring the fact that the assessee is a registered co.op. society, maintaining books of accounts, books are audited in which entire amount of cash deposits in banks are reflected along with its source. He further ignored the fact that the AO has charged tax at maximum rate as per 115BBE of the Act up on the Co-op. Society who is working in remote tribal area for upliftment of aadiwashi women. 3. Ld. CIT(A), NFAC has erred in law and on fact to confirm Assessing Officer's action to non-service of notices u/s 142(1) of the Act upon the assessee as per the requirement of the law. Even a service of show cause notice was upheld though it was served after the date of hearing fixed by the AO. 4. Ld. CIT(A), NFAC has erred in law and on fact to give only six days' time with respect to assessee's adjournment petition dated 15/06/2023 through which adjournment was sought for a month" 3. The facts of the case which can be stated quite shortly are as follows: The assessee before us is a co-operative society cons....
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....s society are inclusively of Tribal women. This society is consisted of two Talukas namely Sagbara and Dediapada. In Dediapada Taluka there are 108 villages and in Sagbara there are 32 villages are the beneficiaries of this society. In total there are 140 villages. This society was registered in 2011 with 1100women. Today it has 3150 women. Most of the women are illiterate. Each member has taken share according to their capacity as Rs. 100/- to Rs. 500/- For the better functioning of the society there is a committee which consist of 15 members who are well trained in the matter. Evey month the committee meets. There are two staffs in the office who are well trained in computer. The various activities of this society: There is regular savings by each member and record is maintained individually by saving pass book. Group-operative Society. There the savings register is maintained. This amount is deposited in the bank. From this savings when the women need money; they are able to take loan. The loan is used for various purposes like education, health, agriculture, purchase of seeds, for any income generation activity etc., the women return the loan with 12% interest....
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.... Officer that cash deposited during demonetization period i.e. 08.11.2016 to 31.12.2016 (54 days) comes to Rs. 41,31,910/-. Whereas cash deposited other than demonetization period during the year i.e. 311 days comes to Rs. 29,99,200/- only which is also not justified. In view of the above facts, the explanation offered by the assessee about of the source of cash deposited in its bank account during the demonetization period, was not acceptable to Assessing Officer. Therefore, the sum of Rs. 41,31,910/- credited into the assessee's above mentioned bank account during the demonetization period was treated as unexplained money u/s 69A of the Act, and accordingly added to the total income of the assessee. The Assessing Officer also stated that since the addition has been made u/s 69A of the Act, the tax payable on this addition is u/s 115BBE of the Act. 8. Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before NFAC/Ld. CIT(A), who has confirmed the action of Assessing Officer. The ld CIT(A) noted that during the assessment proceedings, the assessee has failed to produce the documentary evidence/source of cash deposit. Therefore, ld CIT(A) r....
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....the sides and gone through the relevant material on record. It is seen that the assessment in this case was completed u/s.144 of the Act, despite of the fact that during the assessment proceedings, the assessee has submitted written submission and documents and evidences. During the assessment stage, the assessee has submitted following documents and evidences, viz: (i) Copy of PAN card, (ii) Copy of bank account, (iii) Copy of first page (BDCC Bank & Dena Bank account), (iv) Certificate of incorporation, (v) Audit report for assessment year (A.Y.) 2017-18, (v) Members list in Mandli and written submission to explain the source of cash deposited during the year. I note that Assessing Officer has not made addition in respect of cash deposited during the year other than demonetization period. As per bank statements of the assessee, the position of cash deposited by the assessee are summarized below: 1. Cash deposited in demonetization period Rs. 41,31,910/- 2. Cash deposited other than demonetization period Rs. 29,99,200/-. 3. Other credit by way of transfer and clearing Rs. 17,34,460/- As per respective bank statements, the cash deposit during the year ....