Burdwan Satgachia Janakalyan Society Vs ITO (ITAT Kolkata)
Entire Bank Deposits Can’t Be Taxed as Income: ITAT Kolkata Deletes ₹68.10 Lakh Addition in Co-op Society Case
Kolkata ITAT ‘A’ Bench allowed the appeal of a co-operative society for AY 2012-13 and deleted the addition of ₹68.10 lakh made u/s 69A towards cash & time deposits in bank account. Tribunal held that the AO erred in treating entire deposits as unexplained income, especially when the society had incurred a loss of ₹4.26 lakh during the year. It was observed that merely because no return was originally filed, deposits could not automatically be taxed as income. Tribunal further held that filing of return is not a pre-condition for claiming deduction u/s 80P, and section 80A(5) or 80AC does not bar such claim in cases where no return was filed. Relying on coordinate bench decisions, ITAT held that the CIT(A) was unjustified in confirming the addition without appreciating the nature of co-operative society activities, audited accounts & loss position. Accordingly, the order of CIT(A) was set aside and AO was directed to delete the entire addition.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 16.12.2024 for the AY 2012-13.
