R 1618 Varadharajapuram Primary Agri. Co-op. Society Vs ITO (ITAT Chennai)
Chennai: The Income Tax Appellate Tribunal (ITAT), Chennai Bench, has remanded the case of R 1618 Varadharajapuram Primary Agri. Co-op. Society to the Assessing Officer (AO) for fresh adjudication. This decision comes after the cooperative society failed to respond to multiple notices regarding substantial cash deposits totaling Rs. 6,16,68,376, leading to the amount being added to its income as unexplained money. The Tribunal, in its order dated April 30, 2025, imposed a condition of payment of Rs. 5,000 to the State Legal Aid Authority, Madras High Court, as a prerequisite for the fresh hearing.
The appeal, filed by the assessee for Assessment Year (AY) 2019-20, contested the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, on February 20, 2025. The core contention was the CIT(A)’s confirmation of the AO’s assessment order.
The origins of the dispute trace back to the AO initiating assessment proceedings under Section 147 of the Income Tax Act, 1961, for AY 2019-20. This was triggered by information indicating significant cash deposits made by the assessee during the previous financial year. Given that the assessee had not filed a return of income for AY 2019-20, the AO proceeded to issue a notice under Section 148 of the Act on March 30, 2023, adhering to the procedure outlined in Section 148A(d). This was subsequently followed by a notice under Section 142(1) on July 10, 2023, seeking relevant information.
