TaxTMI 
TaxTMI 
2025 (2) TMI 1555
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....CIT(A) should have appreciated the fact that during the course of assessment proceedings, the assessee did not give the identity, genuineness and credit worthiness of the persons from whom the assessee has stated to have collected cash in spite of repeated requests. The Banking Institutions are regulated by the provisions of Banking Regulations Act, 1949 and guidelines issued by RBI are only permitted to accept cash deposits. The assessee is a society, not a Banking Institution and not governed by Banking Regulations Act, 1949 and RBI and hence is not permitted to accept cash deposits from its members. The Hon'ble CIT(A) relying on above referred case is erroneous. (ii) The Hon'ble CIT(A) erred in allowing the assessee claim of exemption of Rs. 9,78,468/- u/s 80P of the Act relying on: 1) The decision of Hon'ble ITAT Rajkot [Para 7.1 & 7.2 of 6.3.2 of Page 14] in the case of Medi Seva Sahkari Mandali Ltd. Vs. the ADIT(CPC) relying on Section 143(1)(a)(v) was with effect from 01-04-2021. The Hon'ble CIT(A) should have appreciated the fact that w.e.f 01-04-2021, where return has been made u/s 139 or in response to a notice u/s 142(1), the re....
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....me is the deposits from the members and the interest received from the members and also on the monies deposited into bank through which the interest was received. The assessee submitted that the deposits made in the banks are nothing but the deposits given by the members and the withdrawals are the monies withdrawn for the purpose of providing loans to the members. Thereafter, on 07/01/2023, the assessee submitted the cash book in PDF in support of their contention that the monies deposited in the Raichur Co-operative Bank is the amounts deposited by the members which in turn deposited into the said bank. On the same day, the assessee filed their written submissions, byelaw copy and the CBDT Circular copy in support of their submissions. 3. Again on 22/02/2023, the assessee submitted the following details: a) Written submission b) Commercial loan holders list c) Gold loan list d) FD loan list e) Mortgage loan list f) Regular members list g) FD depositors list h) SB Accounts i) Pigmy depositors list and j) Profit & loss appropriation account 4. The assessee also filed the resolution copie....
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....ber, amount and head under which collection was made and also by considering the judgment of Hon'ble Gujarat High Court, Hon'ble Supreme Court and the order of Hon'ble Hyderabad Bench of the Tribunal and on that basis, the Ld.CIT(A) had deleted the addition made u/s. 68 of the Act. Insofar as the denial of deduction u/s. 80P(2)(a)(i) of the Act, the Ld.CIT(A) had also deleted the same by relying on the judgements as well as the orders of the Tribunal in which it was held that if the claim of deduction was made in the return filed u/s. 148, it could be allowed. As against the said order of the Ld.CIT(A), the revenue is in appeal before this Tribunal. 6. At the time of hearing, the Ld.AR filed a paper book enclosing the financial statements for the A.Y. 2018-19, extract of cash book of the A.Y. 2018-19, acknowledgement copies for responses submitted before the NFAC and the acknowledgment copies for the responses submitted before the AO and prayed that the Ld.CIT(A) had considered the various documents filed before it and on that basis, the appeal was allowed. The Ld.AR further submitted that the assessee had also submitted the cash book for the entire year in which all....
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....ank are regulated by the provisions of the Banking Regulations Act, 1949, and the guidelines issued by RBI. This is apart from the fact that under provisions of section 80P of the Act, entire income from banking activities is exempt in the hands of the assessee, a co-operative bank Thus, there can exist no reason for the assessee-bank to indulge in any activity which would yield undisclosed income. 17. Therefore, in the facts and circumstances of the case, the findings recorded by both the CIT(A) and the Tribunal establish that the assessee had discharged the primary onus which was on it by offering explanation, and the said explanation has not been found to be incorrect or false in any manner. The grievance made by the Assessing Officer that complete details and addresses of the depositors were not furnished has been categorically found to be incorrect in the light of facts which have come on record and as found by the Tribunal. Similarly, as regards the defects in maintenance of records of the bank, both the CIT(A) and the Tribunal have accepted the explanation tendered by the assessee by referring to the statements of the manager and the clerk. In these circumstances, i....
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.... received from its members and deposited into the bank account could not be treated as unexplained cash credit. The ld CIT also considered the fact that the assessee is governed under Govt. regulations and therefore the addition u/s 68 of the Act could not be made. The Ld CIT also considered the cash book filed before the AO and satisfied himself that all the details are available and therefore addition u/s 68 of the Act could not be made. The Ld.CIT(A) had also relied on the judgement of the Hon'ble Gujarat High Court reported in 149 taxmann 149 in the case of Pragati Cooperative Bank Ltd Vs CIT and deleted the addition made u/s 68 of the Act. 11. The revenue had not produced any contra evidence to disprove the claim made by the assessee. But unfortunately the AO had observed that no details about the names of the members, details of the members who had deposited cash nor the ledger of such persons were made available. Even though we are convinced that there is no case for making addition u/s. 68 of the Act in order to peruse the details such as names of the members and the amount deposited by them to show that the same are not unexplained cash credit, we are remitting this....
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....h deposited into appellant's bank accounts is received from its members in the course of business. The receipts qualify as business receipts which is accounted under respective heads in proof of which the audited financials were submitted. The cash credits which are in the nature of provision of credit facility towards attainment of its object ought not to have been added as unexplained u/s 68. In proof of the above submissions, we are uploading the following documents for your honour's ready reference: Document 2 1. Cash Book for the ENTIRE YEAR giving details of cash collected which has particulars of Date of receipt, Nature of Receipt, Payer name and account number, Amount, Head under which collected etc. 2. The cash collected through pigmy agents constitutes substantial portion of cash received. We are enclosing on random basis, few receipts/vouchers issued on collection of Pigmy amount. 3. We are enclosing few vouchers on random basis, in proof of cash received from members for various deposits such as current account, FD, RD, etc. 4. Head wise details of cash receipts and payments during the year. 5. Scanned copy of Day book giving details of cash received for....
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....u/s 68 is unsustainable. Reliance is placed on the recent judicial decision by The Hon. Bengaluru ITAT, in the case of SMT. TeenaBethala v/s ITO (ITA No 1383/Bang/2019) dated 28/08/2019 wherein it was delivered that "On a reading of section 69A (supra), it is clear that the onus is upon the AD to find the assessee to be the owner of any money, bullion, jewellery or valuable article and such money, bullion, jewellery or valuable article was not recorded in the books of account, if any, maintained by the assessee for any source of income. In these circumstances, the AO can resort to making an addition under section 69A of the Act only in respect of such monies / assets / articles or things which are not recorded in the assessee's books of account. In the case on hand, the cash deposits are recorded in the books of account. In these circumstances, it is evident that the AO has not made out a case calling for an addition under section 69A of the Act." Though the above judgment is in the context of Section 69A, it is relevant for Section 68 in this case considering the reasoning used. Thus, the addition of Rs.2,82,88,000/- is bad in law. iv. The money received from the members is the....