2024 (12) TMI 1611

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.... in confirming the addition u/s 68 of Rs.23,78,500 towards alleged unexplained cash deposits made in bank account during demonetization period without appreciating that the said addition was not justified in law and on facts. 2. The learned CIT(A) failed to appreciate that the said cash deposits of Rs.23,78,500 were made out of SBNs deposited by members of the assessee credit society and since the identity of the members and genuineness of the said deposits was not doubted by the Dept., the addition made u/s 68 in respect of such cash deposits was not justified in law and on facts. 3. The learned CIT(A) ought to have appreciated that assuming without admitting that the assessee credit society was not permitted by Govt. to accept old SBN....

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....00/- on 11.11.2016 i.e. during the period of Demonetization.  The cash deposited was in the form of specified bank notes of 500 and 1000 which were Demonetized.  Ld.AR submitted that these amounts were collected from the members of the Patsanstha towards their repayment of loan or installments.  During assessment proceedings, list of members along with their PAN Numbers and amount deposited was provided to the Assessing Officer.  Not only that, the assessee had filed an elaborate reply online under the heading "Cash Transactions 2016", with list of Individuals, PAN Numbers and Amount Deposited.  This submission was made as per the directions of the Income Tax Department.  Ld.AR filed copy of the same during the....

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..../- in the bank account maintained by assessee on 11.11.2016 in the form of Demonetized Currency.  The AO made an addition under section 68 of Rs.23,78,500/- on the ground that assessee was not authorized to collect Demonetized Currencies after 08.11.2016.  However, on perusal of the assessment order, no evidence has been brought on record by the Assessing Officer to demonstrate that the amount which was deposited has been collected by the assessee after 08.11.2016.  It is mentioned in the assessment order that assessee had filed list of its members along with PAN.  There is no dispute that the persons who have deposited these amounts were Members of the assessee. 4.2 This issue has been decided by ITAT Pune in ITA No.56....

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....vant material on record. It is seen that the assessee is a Urban Cooperative Credit Society which received Rs.1.78.400/- from 15 depositors whose all the necessary particulars have been given. The list comprises receipt of Rs.85,970/- from 3 small saving agents and Rs.94,000/- from 12 customers. The assessee furnished necessary details in respect of the depositors. The AO refused to accept the genuineness of the transaction and made the addition w/s.68 of the Act. The Id. AR has brought to my notice an order passed by the Bangalore Bench of the Tribunal in Prathamika Krushi Pattina Sahakari Sangha Niyamitha Itagi Pkpssn (ITA No.593/Bang/2021) dt. 01-06-2022 in which the addition made under similar circumstances has been deleted. In this ord....