2026 (2) TMI 925

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.... the Respondent : Shri S.N Divatia, with Shri Samir Vora, ARs ORDER PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the Revenue against the order dated 03.06.2025 passed by the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi ('Ld. CIT(A)' in short), under Section 250 of the Income-tax Act, 1961 ('the Act' in short), relating to ....

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....t-backed agricultural credit scheme formulated by the Ministry of Agriculture and implemented through NABARD. Under this scheme, agricultural loans at concessional rates are extended to farmers, based on the size of their agricultural land holdings. 3.1 The operational mechanism of the KCC Scheme involves routing of funds from NABARD to District Cooperative Banks, which thereafter transfer the ....

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....monetized currency was illegal and the said amount represented unexplained money. The Assessing Officer, therefore, treated the amount as unexplained cash credit and made an addition of Rs. 93,75,500/- to the total income of the assessee. 4. Aggrieved by the assessment order, the assessee filed an appeal before the Ld. CIT(A) deleted the impugned addition. 5. Aggrieved by the order of the Ld....

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....ety functioning under a Government-backed KCC scheme and acts only as an intermediary for loan disbursement and recovery. The assessee has placed on record complete details of the farmers and members from whom SBNs were accepted. The identity of the depositors, purpose of deposits, and genuineness of transactions have not been doubted by the Assessing Officer. It is also pertinent to note that the....