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TMI Blog2024 (6) TMI 1020X X X X Extracts X X X X X X X X Extracts X X X X ..... s raised the following grounds of appeal : 1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in confirming the addition of Rs. 6,66,151/- made by the AO and not appreciating the contention of the appellant that the provision @0.40% made on standard assets was as per the as per the NPA provisions norms and guidelines issued by Reserve Bank of India. 2. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in confirming the addition of Rs. 12,34,000/- u/s 68 of the Act made by the AO and not appreciating the contention of the appellant that cash accepted during the demonetization period was towards the instalment of outstanding loan account of the borrower. 3. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ratio laid by the Hon'ble Supreme Court in the case of Tek Ram v. CIT (2013) 357 ITR 133 wherein it was held that where documents filed by assessee before Court had some relevance, same should be considered while deciding appeal. 2.1 The ld.AR has relied on the following decisions : 1. Hon'ble ITAT Pune Bench in ITO Vs. CD Patani Nagri Sahkari Pat Sanstha in ITA No.727/PUN/2022 for A.Y. 2017-18 dated 28.03.2023. 2. Hon'ble ITAT Pune Bench in Bhagur Urban Credit Co-operative Society Limited Vs. ITO in ITA No.561/PUN/2022 for A.Y.2017-18 dated 03.0.2023. 3. Hon'ble ITAT Chennai Bench in Purani Hospital Supplies Private Limited Vs. DCIT in ITA No.489/CHNY/2022 for A.Y. 2017-18 dated 31.05.2023. 4. Hon'ble ITAT Indore Bench i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As per these notification, it is clear that only "banking company defined under the Banking regulation Act, 1949 (10 of 1949)" read "banking company, co-operative bank, corresponding new bank, subsidiary bank, regional rural bank and the state bank of India as defined under the Banking regulation Act, 1949 (10 of 1049) were allowed to accept old currency and the assessee as a NBFC was not allowed to accept old currency. During the assessment proceedings, the AO observed from the submissions made by the appellant that in Cash Book the cash balance on 08.11.2016 was Rs. 16,39,408/-. However, on 02.12.2016, the appellant had deposited an amount of Rs. 28,73,500/- in old currency. In cash book, the appellant had shown cash received from so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oning and findings, the addition made by the AO requires to be confirmed. In this case, amount of Rs. 12,34,000/- was credited in the books of accounts of the appellant in financial year 2016-17. The explanation offered by the appellant was not satisfactory in the opinion of the assessing officer. The AO has relied on the Notification dt. 08.11.2016 and corrigendum on 09.11.2016 from Ministry of Finance defining banking company which included Co-operative Bank, Subsidiary Regional Rural Bank and Private Sector Bank and Public Sector Bank. The NBFCs were exclusively excluded from receiving old currency notes during demonetization period. The copy of Notification and corrigendum by Ministry of Finance is enclosed for your kind perusal." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted before making any deduction under this clause and Chapter-VIA) on account of provision for bad and doubtful debts to the extent of five per cent of the total income in the case of NBFCs. This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-18 and subsequent assessment years. 4.3 Since AO and ld.CIT(A) failed to consider the provisions of 36(1)(viia)(d) and assessee had filed additional evidence to substantiate this claim, in the interest of substantial justice, we set- aside the addition made by AO of Rs. 6,66,151/- to the Assessing Officer for denovo adjudication. The Assessing Officer shall give opportunity to the assessee. Accordingly, Ground No.1 of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... netization period in the form of demonetized currency. Assessee also submitted that assessee maintains all KYC documents of all these persons. The AO had not asked the assessee to produce the said KYC Documents. Rather AO has not challenged the identity of the depositors, genuineness of the transactions and creditworthiness of the depositors. In these facts and circumstances of the case, we are of the opinion that no addition can be made under section 68 of the Act. We find support from the order of ITAT Pune Bench authored by then Hon'ble Vice-President, Shri R.S. Syal in the case of M/s. Bhagur Urban Credit Co-operative Society Ltd., Vs. ITO in ITA No.561/PUN/2022 for A.Y.2017-18 dated 03.01.2023. Therefore, the AO is directed to delete t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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