9911796707
TMI Blog2023 (10) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... C, has erred in law and on facts to confirm AO's addition u/s 69A of the Act for Rs. 41,31,910/- ignoring the fact that the assessee is a registered co.op. society, maintaining books of accounts, books are audited in which entire amount of cash deposits in banks are reflected along with its source. He further ignored the fact that the AO has charged tax at maximum rate as per 115BBE of the Act up on the Co-op. Society who is working in remote tribal area for upliftment of aadiwashi women. 3. Ld. CIT(A), NFAC has erred in law and on fact to confirm Assessing Officer's action to non-service of notices u/s 142(1) of the Act upon the assessee as per the requirement of the law. Even a service of show cause notice was upheld though it was served after the date of hearing fixed by the AO. 4. Ld. CIT(A), NFAC has erred in law and on fact to give only six days' time with respect to assessee's adjournment petition dated 15/06/2023 through which adjournment was sought for a month" 3. The facts of the case which can be stated quite shortly are as follows: The assessee before us is a co-operative society consisting Tribal/village women. As per information available with Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Taluka there are 108 villages and in Sagbara there are 32 villages are the beneficiaries of this society. In total there are 140 villages. This society was registered in 2011 with 1100women. Today it has 3150 women. Most of the women are illiterate. Each member has taken share according to their capacity as Rs. 100/- to Rs. 500/- For the better functioning of the society there is a committee which consist of 15 members who are well trained in the matter. Evey month the committee meets. There are two staffs in the office who are well trained in computer. The various activities of this society: There is regular savings by each member and record is maintained individually by saving pass book. Group-operative Society. There the savings register is maintained. This amount is deposited in the bank. From this savings when the women need money; they are able to take loan. The loan is used for various purposes like education, health, agriculture, purchase of seeds, for any income generation activity etc., the women return the loan with 12% interest. They are given dividend fund annually during the Annual General Meeting of every year. These women are provided many trainings such as for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than demonetization period during the year i.e. 311 days comes to Rs. 29,99,200/- only which is also not justified. In view of the above facts, the explanation offered by the assessee about of the source of cash deposited in its bank account during the demonetization period, was not acceptable to Assessing Officer. Therefore, the sum of Rs. 41,31,910/- credited into the assessee's above mentioned bank account during the demonetization period was treated as unexplained money u/s 69A of the Act, and accordingly added to the total income of the assessee. The Assessing Officer also stated that since the addition has been made u/s 69A of the Act, the tax payable on this addition is u/s 115BBE of the Act. 8. Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before NFAC/Ld. CIT(A), who has confirmed the action of Assessing Officer. The ld CIT(A) noted that during the assessment proceedings, the assessee has failed to produce the documentary evidence/source of cash deposit. Therefore, ld CIT(A) reiterated the findings of the assessing officer and confirmed the addition made by the assessing officer. Aggrieved by the order of NFAC/Ld. CIT(A), the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at during the assessment proceedings, the assessee has submitted written submission and documents and evidences. During the assessment stage, the assessee has submitted following documents and evidences, viz: (i) Copy of PAN card, (ii) Copy of bank account, (iii) Copy of first page (BDCC Bank & Dena Bank account), (iv) Certificate of incorporation, (v) Audit report for assessment year (A.Y.) 2017-18, (v) Members list in Mandli and written submission to explain the source of cash deposited during the year. I note that Assessing Officer has not made addition in respect of cash deposited during the year other than demonetization period. As per bank statements of the assessee, the position of cash deposited by the assessee are summarized below: 1. Cash deposited in demonetization period Rs. 41,31,910/- 2. Cash deposited other than demonetization period Rs. 29,99,200/-. 3. Other credit by way of transfer and clearing Rs. 17,34,460/- As per respective bank statements, the cash deposit during the year is as under: Sr.No Bank name/Branch Account No. Cash deposited in demonetization period Cash deposited other than demonetization period during the year Other credit by way ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts and evidences so submitted by the assessee, except to say that explanation of the assessee is not acceptable. I note that Assessing Officer has not refuted or discredited these evidences and documents. The Assessing Officer does not mention why he is not accepting these evidences. On the contrary, the Assessing Officer has just brushed aside these evidences without even a word on why they are not acceptable. It is a well settled Law that when an assessee has all the possible evidence in support of its claim, they cannot be brushed aside based on surmises. 15. I note that assessee -trust has received subscription/donation to the tune of Rs. 41,31,910/- and the same was amount collected/received from its members. The ld Counsel stated that this Mandali has 3150 women members and each member has taken share of Rs. 100/- to Rs. 500/- according to their capacity. Thereafter, these savings are collected by the President and Secretary. The amount so collected is deposited in the Bank Account. The assessee (Mandli) provide loan facilities to its members @ 12% and the dividend is distributed to its member annually during the Annual General Meeting of every year. Therefore, based on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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