Demonetisation Deposits in Credit Society Members’ Accounts Not Taxable: ITAT Bangalore

Merchants Credit Co-operative Society Ltd. Vs ITO (ITAT Bangalore) The appeal before the Income Tax Appellate Tribunal, Bangalore Bench, concerned Assessment Year 2017-18 and challenged the confirmation of an addition of Rs.67,31,239 under Section 68 of the Income-tax Act in respect of cash deposits received during the demonetisation period. The assessee, a co-operative society registered under the Karnataka State Co-operative Societies Act, 1959, was engaged in accepting deposits, providing credit facilities, making investments and advancing agricultural loans to its members. It filed its ret...