2025 (3) TMI 2176

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....ment Year [A.Y.] 2012-13. 2. The revenue has raised the following grounds of appeal: "1. On the facts and in circumstances of the case and in law, in deleting the addition of Rs. 49,61,737/-, the CIT(A) erred in not exercising his co-terminus powers by failing to conduct any independent enquiries to analyse the particular issue whether or not the co-operative society is doing business which is not permitted by the said statute. 2. On the facts and in circumstances of the case and in law, the CIT(A) erred in deleting the addition of Rs. 2,22,07,124/-, even though it has been brought out in Para 3.5 of the impugned order that a new scheme of Silver Jubilee Deposit Scheme was introduced by the assessee from where a sum of ....

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.... 80P(2)(a)(i) by applying the provisions of section 80P(4) after observing that the assessee is carrying on the business of banking and providing credit facilities to its members. Ld. CIT(A) decided the issue in favour of the assessee in the light of the decisions of the Hon'ble Apex Court in the cases of the Citizen Cooperative Credit Society Ltd. [Civil Appeal No. 10245 of 2017] and Mavilayi Service Co-operative Bank Ltd. v/s CIT, Calicut[ (2021) 123 taxmann.com 161 (SC)]. 5.2 In light of the above decisions and the fact that the Ld. AO did not establish that the cooperative society is doing business which is not permitted or it has received any licence to work as a cooperative bank from the Reserve Bank of India [RBI], the denial of d....

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....124/- 6.1 With regard to the cash deposits received by the assessee, it was explained that these were out of cash collections made by the agents of the assessee deployed to collect small deposits on a daily basis from its members. Ld. AO did not accept the assessee's explanation and held that no documentary evidence has been furnished in support of the cash deposits, accordingly, these were treated as unexplained cash credits u/s 68 of the Act. 6.2 Ld. CIT(A) observed that the assessee collected small deposits in cash from its 3600 members in very small amounts on a daily basis and such amounts were deposited in the bank account maintained by the society. During the year, a new scheme viz. Silver Jubilee Deposit Scheme was introduced ....