M/s. Doeguling Primary Agriculture Cooperative Society Ltd. vs. The Income Tax Officer, Ward – 1, Sirsi.

Parties Involved

Facts Summary

The assessee, M/s. Doeguling Primary Agriculture Cooperative Society Ltd., is a cooperative society registered under the Karnataka Co-operative Societies Act. It filed its return of income on 24/06/2017 declaring Nil income. The case was selected for scrutiny, and during the assessment, the Assessing Officer (AO) found that the society had accepted deposits of Rs. 20,000/- and above in cash. The AO initiated penalty proceedings under section 271D of the Income Tax Act for the alleged contravention of section 269SS. The assessee contended that the deposits were received only from its members and not from any other person, and thus, section 269SS was not applicable. The AO and the Commissioner of Income Tax (Appeals) (CIT(A)) dismissed the assessee's appeal, holding that the assessee had not shown any business exigency to accept the deposits in cash. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the penalty under section 271D of the Income Tax Act was correctly levied for the contravention of section 269SS.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Paharhati O Uttar Memari Cooperative Agricultural Marketing Society Ltd. Vs. ACIT, Ward-2(2), Burdwan

  Kolkata ‘C’ Bench, Kolkata benchAY 2017-18Allowed

• The Belthangady Co-operative Agricultural Sangha Limited Vs. The Income Tax Officer

  'B' Bench, Bangalore benchAY 2017-18 & 2018-19Partly Allowed

• M/s. Gurumachideva Vividhoddesha Sahakara Sangha Ltd. vs. The Income Tax Officer, Ward – 1 & TPS, Udupi

  SMC-‘B’ BENCH : BANGALORE benchAY 2017-18Allowed

• The Income Tax Officer, Ward – 1 & TPS, Bagalkot Vs. M/s. Jyoti Co-op. Credit Society Ltd.

  'C' Bench : Bangalore benchAY 2017-18Dismissed

• Sundar Ram Shetty Nagar Credit Souharda Sahakari Limited Vs. The Income Tax Officer

  SMC Bench, Bangalore benchAY 2017-18 & 2018-19Partly Allowed

• Kamalpur Jotekanuragarh S K U S Limited Vs. ACIT, Circle-38, Medinipur

  Kolkata ‘SMC’ Bench, Kolkata benchAY 2017-18Partly Allowed