Question 1

What are the key legal issues in DCIT, Circle-1, Faridabad Vs. The Ballabhgarh Cooperative Milk Producers Union Ltd.?

Accepted Answer

1. Whether the CIT(A)/NFAC erred in reversing the Assessing Officer’s findings treating the assessee’s cash deposits as unexplained. 2. Whether the Revenue’s latter appeal ITA No.4468/Del/2024 is a duplicate file.

Question 2

What are the facts of DCIT, Circle-1, Faridabad Vs. The Ballabhgarh Cooperative Milk Producers Union Ltd.?

Accepted Answer

The Revenue’s twin appeals ITA Nos. 4467 & 4468/Del/2024 for assessment years 2016-17 and 2017-18 arise against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s orders, both dated 31.07.2024, involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961. The Revenue argued that the CIT(A)/NFAC erred in reversing the Assessing Officer’s findings treating the assessee’s cash deposits as unexplained. The assessee, a cooperative society engaged in the supply of milk and manufacture of milk products, deposited large sums of cash in their bank accounts. During remand proceedings, the assessee submitted documents demonstrating that a majority of their sales were through cash, and about 70 to 75% of the sales were deposited in their bank account.

DCIT, Circle-1, Faridabad Vs. The Ballabhgarh Cooperative Milk Producers Union Ltd.

Parties Involved

Facts Summary

Legal Issues

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