Vikas Co-operative Credit Society Niyamith Tilavalli Vs ITO (ITAT Bangalore)
In the case of Vikas Co-operative Credit Society Niyamith Tilavalli Vs ITO, the ITAT Bangalore addressed an appeal from a co-operative society concerning an addition of ₹9,76,825 made under Section 69A of the Income Tax Act for the assessment year 2017-18. The Assessing Officer (AO) had argued that the society was not a specified person authorized to accept demonetized currency, thus treating the cash deposits as unexplained income. The society claimed these deposits were sourced from loan recoveries and member contributions, but failed to present evidence during the proceedings before the First Appellate Authority (CIT(A)), leading to an ex-parte order. The CIT(A) confirmed the addition but granted a deduction under Section 80P based on a Supreme Court ruling. On appeal to the ITAT, the learned representative argued that the society did not receive notice for filing evidence. The ITAT decided to restore the matter to the AO for examination of the cash deposit sources, emphasizing that the addition under Section 69A cannot solely rely on the society’s status regarding demonetized currency. The ITAT ordered that if the sources are found genuine, the addition should be deleted, thus allowing the appeal for statistical purposes.
