Geora Agriculture Co-Operative Service Society Limited Vs ITO (ITAT Chandigarh)
In this case, the assessee, a co-operative society engaged in Public Distribution System (PDS) activities, sale of fertilizers, and providing loans to members, challenged the reassessment proceedings initiated under Sections 147 and 148 of the Income Tax Act for AY 2015–16. The reassessment was based on information from the Insight Portal alleging cash deposits and time deposits in bank accounts. The Assessing Officer treated cash deposits of Rs. 3.25 crore and time deposits of Rs. 3.85 crore as unexplained money under Section 69A and made an addition of Rs. 7.10 crore.
The CIT(A) partly accepted the assessee’s contention by holding that the Assessing Officer had double counted cash deposits and restricted the addition to Rs. 1.93 crore, while sustaining an addition of Rs. 75 lakh relating to FDRs.
Before the Tribunal, the assessee argued that the notice under Section 148 was barred by limitation and had been issued on an incorrect and obsolete PAN despite the department being informed of the correct PAN during proceedings under Section 148A(b). The assessee also submitted that the deposits represented regular business receipts duly recorded in books of account and that the accounts were audited under the Co-operative Societies Act.
