2025 (6) TMI 1452

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.... was a Primary Agriculture Cooperative Society Limited and registered under the Co-operative Society Act and deal directly with rural (agriculture) by selling their produces and selling of Fertilizers and pesticides to the Farmers as per the instructions. During the year under consideration, the assessee-society had deposited a sum of Rs. 62,86,015/- maintained with The Adilabad District Cooperative Central Bank Ltd., but, did not file it's return of income. The case of the assessee-society was selected for scrutiny by the Directorate of Income Tax (Systems) as per the information available in Insight Portal of the Department. The Assessing Officer has reason to believe that the income chargeable to tax has escaped assessment, he reopened t....

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....e assessee-society has not filed return of income u/sec.139 of the Act. Accordingly, the Assessing Officer determined the total income of the assessee-society at Rs. 65,39,330/- vide order dated 26.02.2024 passed u/sec.147 r.w.s.144 r.w.s.144B of the Act. 3. On being aggrieved by the assessment order, the assessee-society carried the matter in appeal before the learned CIT(A) and reiterated it's submissions made before the Assessing Officer. The learned CIT(A) being not satisfied with the explanations furnished by the assessee-society sustained the additions made by the Assessing Officer. 4. Aggrieved by the order of the learned CIT(A), the assessee-society is now in appeal before the Tribunal. 5. Shri Upadhyay Raghavender, Advocate for ....

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....e order of the learned CIT(A) submitted that, the assessee-society did not disclose the cash deposit in it's audit report and only after issuance of show cause notice, the assessee-society admitted the cash deposit of Rs. 62,86,015/- and thereby, submitted false declaration in it's reply and deliberately concealed the transaction of cash deposits into the bank account. Further, the assessee-society has failed to prove the purpose for which it has taken loan from the bank. Similarly, the assessee has disclosed profit of Rs. 2,53,315/- and in absence of return of income, as per the provisions of sec.80P of the Act, the deduction claimed by the assessee society cannot be allowed. In absence of satisfactory explanation furnished by the assessee....

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....n response to notice u/sec.148 of the Act, the assessee-society has furnished it's explanation along with relevant bank statement to prove the source of the cash deposit into the bank account, but, the Assessing Officer has not considered the explanation of the assessee-society and evidence in support of it's arguments. The learned CIT(A) sustained the addition on the ground that the assessee-society failed to prove the 'purpose' of taking loan from the bank. We find that, the Assessing Officer had made the addition in absence of return of income either u/sec.139 or u/sec.148 of the Act, ignoring the explanation furnished by the assessee-society along with relevant documentary evidences i.e., bank statements etc., Further, the Assessing Off....