TaxTMI 
TaxTMI 
2022 (9) TMI 1607
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....n of income as invalid. 3. In the facts of the case and in Law, the learned AO erred in making addition of Rs. 27,82,985/- by arbitrarily adding cash deposit made during demonetization period amounting to Rs. 18,07,000/- as undisclosed income u/s 69A r.w.s 115BBE and also estimating business income of Rs. 9,75,985/- by a. Disregarding the fact that entire cash deposit is fully accounted for and disclosed in the audited books of the Appellant; b. Without rejecting books of accounts u/s 145(3); c. Arbitrarily rejecting details of cash deposits even though each and every details was submitted about the source and nature of receipt. 4. In the facts of the case and in Law, the learned AO erred in disallowing deduction u/s 80P(2)(a)(i) by disregarding the fact that the said disallowance u/s 80AC was applicable in AY 2017-18 as wrongly held by the AO. 5. In the facts of the case and in Law, the learned CIT(A) erred in confirming the addition by rejecting all the grounds of appeal without considering detailed facts submitted by the Appellant and also misinterpreting section 80AC. [B] Relief Prayed: The appellant therefore pr....
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....al Co-operative Bank, Borivili (West), Mumbai branch to get the details of bank statement and KYC details of the assessee. The assessee filed the details pursuant to the notice issued by the Assessing Officer, however, same were not found to be acceptable by the Assessing Officer. In the absence of valid return of income filed as per Rule 12 by 22/02/2018, the Assessing Officer passed the order dated 28/11/2019 under section 144 of the Act and computed the total taxable income of the assessee at Rs. 27,82,985 after disallowing the cash of Rs. 18,07,000, deposited during the demonetisation period, under section 69A read with section 115BBE of the Act. Further, the Assessing Officer treated 10% of the total credits (excluding the cash deposits during the demonetisation period) as business income of the assessee. In appeal, learned CIT(A) vide impugned order dated 29/07/2021 dismissed the appeal filed by the assessee, by observing as under: "7.1 in the absence of details being filed regarding the cash deposits, the AO has added the entire cash deposits during the demonetization period u/s 69A rws 115BBE after due verification from the assessee's bank and based upon the de....
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....er section 80P of the Act of Rs. 2,34,364. It is the plea of the assessee that as part of its activity of Co-operative Credit Society, assessee received total cash deposit of Rs. 1,12,72,341, during the year under consideration, from the following source: Sr. No. Details of receipt of cash Amount (Rs.) 1. Daily deposit 1,02,53,490 2. Dam Duppat Deposit 2,90,000 3. Savings deposit 2,71,101 4. Recovery of loans 4,57,750 Total 1,12,72,341 As per the assessee, the cash deposited in its bank during the year is as under: Period Amount (Rs.) 01/04/2016 to 08/11/2016 56,38,800 09/11/2016 to 31/12/2016 (1000 and 500 old notes) 2,00,000 09/11/2016 to 31/12/2016 (other than 1000 and 500 old notes) 15,90,500 01/01/2017 to 31/03/2017 31,71,770 Total 1,06,01,070 8. To substantiate its claim, the assessee has also filed statement of accounts no. 00281806000030 and 00281106000069 maintained with Mumbai District Central Co-operative Bank, Borivili (West), Mumbai branch, forming part of the paper book from page No.197-219. Thus, as per the assessee cash amounting to Rs. 17,90,500, was only deposited in its b....
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....ring the year under consideration. The assessee has also provided the PAN number of some of its members. However, the Assessing Officer without commenting upon any of these details added the cash deposit made during the period of demonetisation as undisclosed income of the assessee. We find that though Assessing Officer has issued notice under section 133(6) of the Act to the bank seeking information regarding the details of bank statement and KYC details of the assessee, however, neither such notice under section 133(6) was issued nor examination/enquiry was done from the members. During the hearing before us, the assessee also submitted the list of members along with their PAN/TIN No. who had deposited cash during the demonetisation period in old currency notes. Be that as it may, since this money is of the members of the assessee society and the same is not owned by the assessee society, therefore, we are of the considered view that Assessing Officer has wrongly made the addition under section 69A of the Act, in respect of the cash deposit made during the demonetisation period. 10. As regards the addition by treating net trade margin of 10% of total credit of Rs. 97,59,856 to....