Vidyasagar Samabay Krishi Unnayan Samity Ltd Vs ACIT (ITAT Kolkata)
The Kolkata Bench of the Income Tax Appellate Tribunal allowed the appeal filed by Vidyasagar Samabay Krishi Unnayan Samity Ltd against the order dated 18.12.2023 passed by the National Faceless Appeal Centre under section 250 of the Income Tax Act. The dispute concerned an addition of Rs.91,87,680/- made by the Assessing Officer under section 69A in respect of cash deposits in Specified Bank Notes during the demonetisation period.
The assessee was a cooperative credit society engaged in providing loans and advances to its members and in trading fertilizers and allied products. During the demonetisation period, it deposited total cash of Rs.2,20,97,000/-. The assessee explained that the deposits represented repayment of loans received from its members. It furnished details of the deposits and produced books of account and other documents called for by the Assessing Officer.
The Assessing Officer, however, noted that the assessee had made cash sales of Rs.91,87,680/- during the demonetisation period in Specified Bank Notes which had ceased to be legal tender with effect from 09.11.2016 pursuant to Central Government Gazette Notification No.2652 dated 08.11.2016 issued under sub-section (2) of section 26 of the Reserve Bank of India Act, 1934. According to the Assessing Officer, since the assessee had accepted Specified Bank Notes in lieu of cash sales, the amount deposited in the bank account was liable to be treated as unexplained money under section 69A. The CIT(A) confirmed the addition.
