TaxTMI 
TaxTMI 
2026 (4) TMI 624
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.... Rs. 1,51,25,143/- with the South Indian Bank Ltd. Kerala. As per ITD System data, the assessee has not filed its return of income for A.Y. 2012-13. Therefore, the source of cash deposit in his saving bank account received remained unexplained and unverifiable. Accordingly, notice u/s 148 of the Act was issued from the office of the ITO, Ward-43(5), New Delhi and duly served upon the assessee. Subsequently, the case was transferred to the office of ACIT, Circle-43(1), New Delhi. In response to the notice, assessee e-filed the return of income on 15.10.2019 declaring total income NIL. The reasons for re-opening of the assessment proceedings were communicated to the assessee on 18.10.2019. The notices u/s 143(2) & u/s 142(1) of the Act along with questionnaires were issued to the assessee. In response, assessee has submitted the documents and other supporting material, after examination of the above, the hearing was conducted on various dates through ITBA System. 5. The assessee is a thrift and credit society. The main business of the society is to accept deposits from members and give various types of loans to members. During the course of assessment proceedings, the assessee was....
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....e to these statutory notices the assessee filed its reply stating that the assessee is a thrift and credit society and the main business of the society is to accept deposits from members and give various types of loans to members. During the course of assessment proceedings, the assessee also submitted copy of computation of income sheet, details of unsecured loan, details of unsecured loans, Investment in properties, confirmation, and names of all the members who have made deposits, compulsory deposits, recurring deposits, Saving Deposits and monthly income Scheme. The assessment proceedings were concluded u/s 147 r.w.s.143(3) of the Income Tax Act 1961 on 29.12.2019 at the income of Rs. 4,67,64,080/- after making addition u/sec. 68 of the income tax Act on account of unexplained term deposit liability of Rs. 3,16,38,935/- and Rs. 1,51,25,143/- towards cash deposited in the bank account against returned income of NIL. 8. In response to the submissions in remand report, the assessee submitted as under:- In this connection it is submitted with regard to the issued concerned i.e cash deposited the assessee mentioned in its reply dated 14.12.2019 that source of the Cash De....
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....r of AO is bad in law and against facts of the case. Notice issued u/s 148 of the Act is not legal as having been issued not in accordance with the law and proper approval of authorities and not within time allowed. 2. That the Ld. CIT(A) has arbitrarily and unjustifiably ignored the facts and evidences available on records while confirming wrong addition of Rs. 4,67,64,080/- to the total income of the appellant u/s 68 of the Act made by AO alleging unexplained term deposit liability of Rs. 3,16,38,935/- and Rs. 1,51,25,143/- towards cash deposit in its bank account by the appellant from its own members in the year under appeal. 3. The addition made of Rs. 4,67,64,080/- and upheld by CIT(A) is without any basis, without any material, simply rejecting the positive evidences filed by appellate. The addition deserves to be deleted. 11. At the time of hearing, Ld. AR of the assessee submitted that, assessee does not press ground No.1 which is legal ground against the notice issued u/s 148 of the Act, the same was dismissed as such. 12. With regard to ground Nos. 2 &3, he brought to our notice the certificate issued by the Registrar Of Cooperative Societies which....
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.... 3,25,000.00 3,25,000.00 Un-claim Deposits 2,854.00 - 2,854.00 Total 2,24,60,750.00 94,78,185.00 3,16,38,935.00 15. Since not convinced with the details provided by the assessee he proceeded to make the outstanding as on 31.03.2012 as unsubstantiated liabilities to the extent of Rs. 3,16,38,935/-, we observed that assessee's main activities is accepting the deposits from its own members and lending the same to its members. We notice that as on 01.04.2011 the assessee had liability of Rs. 2,24,60,750/- and during the year assessee has accepted deposits from its own members to the extent of Rs. 94,78,185/- only. We are surprised to note that the Assessing Office made the addition of closing balance as on 31.03.2012 overlooking the fact that assessee has transacted during the year only to the extent of Rs. 94,78,185/-. It clearly shows that Assessing Officer not only overlooked the fact that assessee is accepting deposit from its own members and lending loans to its own members. Further, assessee also filed the detailed deposits details member wise before the Lower Authorities which was completely overlooked by the lower authorities. Further, assessee al....