Balithal Gram Seva Sahakari Samiti Limited Vs ITO (ITAT Jaipur)
Jaipur, May 21, 2025 – The Income Tax Appellate Tribunal (ITAT), Jaipur Benches, has allowed an appeal filed by Balithal Gram Seva Sahakari Samiti Limited, quashing the reassessment order passed by the National Faceless Assessment Centre (NFAC), Delhi, for the relevant assessment year. The Tribunal ruled that the reassessment proceedings initiated under Section 147 of the Income Tax Act, 1961, were not legally sustainable due to a fundamental mismatch between the grounds for reopening the assessment and the final disallowance made.
Case Background: Unfiled Returns and Cash Deposits
The case originated from information received through the Income Tax Business Application (ITBA) software under the “NMS” head, indicating that Balithal Gram Seva Sahakari Samiti Limited, a cooperative society, had not filed its income tax return under Section 139 of the Act. The specific information highlighted significant financial transactions: cash deposits amounting to $1,51,68,000 in a bank account maintained with the Central Cooperative Bank Ltd., The Uniyara, Tonk, Rajasthan.
Based on this information, the Assessing Officer (AO) initiated reassessment proceedings. A notice under Section 148A(b) of the Act was issued, followed by a notice under Section 148 read with Section 148A(d) on March 29, 2023, after the assessee failed to respond to the initial notice.
