2024 (6) TMI 968

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....ting and completing assessment u/s 143(3) because the order passed is both against facts and erroneous in law because the income of the society is exempt. 2. On the facts and circumstances of the case the Ld. AO has erred in having made an addition of Rs. 1,64,33,133/-treating the same as unexplained cash credit u/s 68 of the Income Tax Act. 2. At the outset, it is noted that there is a delay in filing the present appeal of 233 days. In this regard, the assessee has filed an application dated 28.12.2023 explaining the reasons/circumstances for occurring the delay in filing of the appeal. An affidavit of Mr. Deepak Kumar seeking condonation of delay has also been filed, the contents of the same are reproduced hereunder : ....

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....from filing the appeal in time. 4. The ld. DR did not raise any specific objection. 5. Accordingly, we condone the delay and the appeal is taken to be decided on merits. 6. The Society is an Agriculture Co Operative Society working for its members only. The case was selected for scrutiny u/s 148 of Income Tax Act, 1961 for the A.Y. 2017-18. The Assessing Officer found that assessee society accepted an aggregate amount of Rs.1,64, 33,133/- in Specified Bank Notes during the demonetization period from its members which was deposited in the account in Ambala Central Cooperative Bank Ltd. In its reply, the assessee explained that the society is a primary agriculture co- operative society registered with Registrar, Co-operative Societie....

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....tunities but the assessee remained non- compliant. No material facts were brought on record to rebut the finding of the Assessing Officer. The assessee failed to explain the nature and source of cash deposits for the assessment year under consideration. Accordingly, the ld. CIT(A) dismissed the appeal of the assessee and confirmed the addition of Rs. 1,64,33,130/- made by the Assessing Officer. 8. Aggrieved the assessee is in appeal before the Tribunal. 9. We have heard the rival submissions and perused the material available on record. It has been submitted on behalf of the assessee in the Application for Condonation of Delay and such submissions have not been controverted on behalf of the Department that the Manager and staff of the....

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....me their C. A. informed them about the same, in December,2022. In April,2023, when all the bank accounts of the assessee Society, as running in the Ambala Central Co-operative Bank, Ambala were attached by the Income Tax Department, did it come to the notice of the assessee Society, that a huge demand was outstanding against the Society due to some orders passed in assessment years 2015-16 and 2017- 18. The assessee Society, immediately on receipt of notice in this regard, dated 25.04.2023, issued u/ s 226(3) of the Income Tax Act that the assessee Society immediately contacted Mr. Vagish Sharma to do the needful. It was only after a lot of persuasion that he filed an appeal before the Tribunal against the CIT(A)'s order for assessment year....