Dahisar Gramin Bigar Sheti Sahakari Pat Sanstha Maryadit Vs ACIT (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, in Dahisar Gramin Bigar Sheti Sahakari Pat Vs ACIT (Order dated 16 September 2025), remitted the issue of ₹29.46 lakh cash deposits to the Assessing Officer (AO) for fresh verification. The Tribunal accepted the assessee’s explanation that the cash was collected from society members and directed the AO to re-examine the evidence after granting adequate opportunity to the assessee.
The Tribunal also condoned a delay of 388 days in filing the appeal, accepting the assessee’s explanation regarding unavoidable circumstances following the death of its tax consultant.
Background of the Case
The assessee, a co-operative society engaged in rural credit activities, filed an appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 19 August 2023 for Assessment Year 2017-18. The additions made by the Assessing Officer (AO) included:
- Disallowance of deduction under Section 80P amounting to ₹4.56 lakh;
- Disallowance of remuneration to partners of ₹90,000; and
- Addition of ₹29.46 lakh under Section 69A read with Section 115BBE on account of unexplained cash deposits.
The main contention of the assessee was that the CIT(A) had decided the case without granting sufficient opportunity to present evidence or consider requests for adjournment. The appeal also raised a preliminary objection regarding the denial of a fair hearing.
