Case Law Details
ITO Vs Shri Chatrapati Shivaji (ITAT Bangalore)
Introduction: The Income Tax Appellate Tribunal (ITAT) Bangalore heard an appeal filed by the Income Tax Officer (ITO) against Shri Chatrapati Shivaji. The case pertained to the assessment year 2017-18 and involved the disallowance of a deduction claimed under section 80P(2)(a)(i) and an addition made under sections 68/69A for unexplained cash deposits during demonetization.
Background: Shri Chatrapati Shivaji, a cooperative society, filed its return of income declaring Nil income after claiming a deduction under section 80P(2)(a)(i). However, the ITO disallowed the deduction and made an addition under sections 68/69A for unexplained cash deposits during demonetization.
Proceedings and Arguments: Before the First Appellate Authority (CIT(A)), Shri Chatrapati Shivaji argued that the addition made under sections 68/69A lacked legal standing and was based on assumptions without corroborative evidence. The CIT(A) granted relief to the assessee, holding that the addition was not supported by sufficient evidence.
ITAT’s Decision: The ITAT, upon reviewing the submissions and materials, observed that the details of the members who were claimed as the source of the demonetization deposits were not furnished properly before the authorities. Consequently, the ITAT set aside the issue to the file of the ITO for further verification, directing the assessee to provide PAN and KYC details of the members to substantiate the genuineness of the deposits.
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