Sree Narayana Guru Cooperative And Credit Society Limited Vs ITO (ITAT Delhi)
The appeals were filed by the assessee against the order dated 30.06.2025 passed by the Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre for Assessment Year 2012-13. As the issues were common, they were heard together.
The case was reopened under Section 147 on the basis of AIR information indicating cash deposits of Rs. 1,51,25,143 in a bank account. The assessee had not initially filed a return for the relevant year. In response to notice under Section 148, the assessee filed a return declaring nil income. During assessment, the Assessing Officer sought details of cash deposits, unsecured loans, and advances. The assessee, a thrift and credit cooperative society, submitted that it accepted deposits from its members and provided loans to them. It furnished computation of income, details of unsecured loans, investments, confirmations, and member-wise deposit details under various schemes.
The Assessing Officer observed that documentary evidence such as ITRs, identity proofs, and confirmations to establish genuineness and creditworthiness of depositors was not furnished. Consequently, additions of Rs. 3,16,38,935 towards unexplained term deposit liabilities and Rs. 1,51,25,143 towards unexplained cash deposits were made under Section 68.
Before the CIT(A), the assessee filed detailed submissions and additional evidence. A remand report was obtained from the Assessing Officer. However, the CIT(A) upheld the additions, holding that the assessee failed to discharge the onus under Section 68 by not furnishing affidavits, confirmations, ITRs, bank statements, or evidence of financial capacity of depositors.
